Cadence Real Estate has teamed up with a group of high net worth syndicate to purchase Alexander House, Manchester for £6.5M.
The 63,000 sq ft office is situated in the rapidly improving Old Trafford area; opposite the proposed University of Football and in close proximity to the metro station together with both the football and cricket grounds.
Specialist insurance legal practise, Horwich Farrelly, occupies 10 of the 11 floors with the vast majority of accommodation having been refurbished in recent years to provide high quality air-conditioned office space.
The investment produces an income return of 9.8% on expiry of the rent-free period on the fourth floor.
Robert Howe, Director of Cadence, said: “This investment is an excellent acquisition for our investors. It provides strong income in a location that has improved dramatically with the development of a number of new residential and retail schemes in the immediate vicinity. Whilst the property has been acquired as an office investment, the value is underpinned by alternative use value.”
Dan Crossley, Principal of Avison Young, said: “Cadence carried out a considerable amount of due diligence into the location and future prospects of the asset prior to securing and the opportunity proved to be a perfect match for their current requirements. The investment provides an excellent, stable return as well as excellent alternative use prospects.”
Cadence and their investors were represented by Avison Young.
