Prime Manchester Core Plus Office Investment Opportunity
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Attributes
Asking price
NZ$35,389,000
Building area net
5,100 m²
Occupancy
82.00%
Year built
2006
Cap rate
8.00%
NOI
NZ$3,024,000
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: