MAYER REAL ESTATE SELLS MANCHESTER LANDMARK BUILDING FOR £23.7 MILLION
5th October, 2014
Mayer Real Estate, has sold Peter House in Manchester city centre for £23.735 million, reflecting a net initial yield of sub 6% to Rockspring Property Investment Managers (“Rockspring”), on behalf of Rockspring UK Value 2 LP (“UKV2” or the “Fund”). WHR Property Consultants have acted on behalf of Mayer Real Estate
The price reflects over 60% premium to Mayer Real Estate's 2011 original purchase price of £14.7 million, a deal which was also advised by WHR.
Peter House is prominently situated in the heart of St Peter’s Square –a gateway to Manchester city centre. The building comprises 94,650 sq ft of office and ground floor retail and leisure space and 39 underground parking spaces. The offices within the building are fully let to Regus, the world’s largest serviced office provider, which occupies the 10 upper floors of the building, totalling 82,254 sq ft. The ground floor is let to a number of leisure operators including Don Giovanni, Giorgio One, Papa John’s, Terence Paul Hairdressing and Simply News.
Ehud Michman of Mayer Real Estate, comments: “When we originally purchased Peter House, we recognised the future potential of the location, which was to benefit from significant investment including the refurbishment of the Town Hall, the improved public realm works and proposed new office developments. This potential is now being realised as the works to St Peter’s Square are completing and it is firmly establishing itself as the leading new business destination for the city.”
Dan Crossley of WHR comments: “Although MRE had no plans to dispose of Peter House, which it had successfully asset managed over the last three years, the attractive off-market approach by Rockspring was well timed and will enable MRE to focus on new opportunities.”
King Street Commercial acted on behalf of Rockspring.