Acting on behalf of a LANCASTER BUILDINGS NOMINEES (NO.1) LIMITED and LANCASTER BUILDINGS NOMINEES (NO.2) LIMITED, CBRE’s Manchester Capital Markets team has sold the retail parade at Lancaster Buildings in Manchester City Centre to AVIVA Investors for £7.10m, representing a Net Initial Yield of 6.82%.
Peter Rowe of KLW Property advised AVIVA Investors on the purchase.
Lancaster Buildings is an attractive, traditional stone property located on 65-77 Deansgate within the St Ann’s Square conservation area. The six self-contained ground floor retail units totalling 12,199 sq ft are occupied by a mix of high quality operators including Barburrito, Caffé Nero, Subway, Cancer Research, Regis and Castle Galleries. The units generate a total annual income of £510,000. The office floors above the retail have been previously sold by way of long leases.
The prime retail destinations of Market Street, Exchange Square and St Ann’s Square are within a minute’s walk and Kendal’s House of Fraser department store is immediately opposite. The surrounding ground floor uses on Deansgate include high end leisure operators including Gaucho Grill, The Botanist, La Tasca, Pret A Manger, The Living Room, Las Iguanas and Patisserie Valerie.
Colin Thomasson, Executive Director of Capital Markets at CBRE’s Manchester office, said;
“We were delighted to have arranged the sale of Lancaster Buildings to AVIVA Investors. The property is in an excellent location close to a number of top retail destinations and high end leisure operators in the heart of Manchester City Centre. The deal is indicative of the investor appetite for retail investment opportunities within central Manchester.”
Simon Green of AVIVA Investors added “This was an attractive opportunity to acquire a well let retail parade in a dominant regional centre for a yield approaching 7%. Manchester continues to receive significant inward investment and occupier interest and the units provide well configured retail accommodation in a strong pitch.”