55 Princess Street, Manchester_Property for Sale
55 Princess Street, Manchester_Property for Sale
Princess Street, Manchester, M2 4EW, UK

55 Princess Street, Manchester

Asset Description

Prime Manchester Core Plus Office Investment Opportunity

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Attributes

Asking price
€20,249,000
Building area net
5,100 m²
Occupancy
82%
Year built
2006
Cap rate
8%
NOI
€1,730,000

Media

Investment Highlights

  • Prime Multi-let Freehold Grade A office building in the heart of Manchester’s Central Business District
  • Situated opposite the Grade I listed Town Hall and two of the finest civic spaces and public realms at St Peters Square and Albert Square
  • Manchester is the UK’s second city and is the largest financial and business centre outside of London
  • A high specification property let to a quality tenant line up including Tesco, Trowers & Hamlin LLP, AHR Architects and Buck Consultants
  • 62% of the building has been let or subject to lease renewals since 2020
  • Excellent open plan office suites between 1,059 – 9,026 sq ft which are efficient and designed with outstanding flexibility which ideally suit the local occupational market
  • Average Unexpired Lease Term of circa 7.1 years to expiry and 4.9 years to tenants break options
  • Total income of £1,479,354 per annum reflects a low average rent of only £25.72 per sq ft. A discount of 40% compared to £42.50 psf achieved in nearby buildings.
  • There remains 18% vacant with an estimated reversionary rental value of £1,740,906 per annum
  • Manchester recorded rental growth of 6.25% and remains a tightly constrained office market with Grade A vancancy rate of only 4.2% presenting excellent dynamics for further rental growth.
  • Low capital value of only £305 per sq ft compared to over £800 per sq ft evidenced in the city during 2022
  • Offers are invited in excess of £17,300,000 (Seventeen Million Three Hundred Thousand Pounds) subject to contract and exclusive of VAT. Assuming standard purchaser’s costs of 6.80%, a purchase at this level reflects the following Yield Profile:

Net Initial Yield 8.00%

Equivalent Yield 8.7%

Reversionary Yield 9.4%

55 Princess Street, Manchester 4_Property for Sale
55 Princess Street, Manchester 4_Property for Sale

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55 Princess Street, Manchester (0 Properties)

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Last updated
4 Oct 2023