Frogmore Estates, owner of Manchester’s Triangle retail scheme, has taken another stake in the city property market with the acquisition of 18,580 sq m (200,000 sq ft) of offices on Whitworth Street.
The developer paid Arab Bank £12.6m for the freehold of Bridgewater House and plans to refurbish the entire block. Frogmore claims it can boost the building’s current annual income of £1.26m to £1.6m with the letting of the remaining 2,880 sq m (31,000 sq ft) of vacant offices. The deal reflects an initial yield of 9.5% rising to circa 12%.
Paul White, managing director of Frogmore said: “We’re delighted with this acquisition. The building has the advantage of comprising large flexible floorplates that can be provided at competitive rental levels – something we believe is in short supply in the Manchester office market.”
Frogmore has recently signed up three new tenants for the Triangle, formerly Manchester’s Corn Exchange. Fashion retailer Ted Baker is opening a 200 sq m (2,140 sq ft) unit selling clothes for women; surf and snowboard retailer Quiksilver is opening 96 sq m (1,035 sq ft), while specialist lingerie firm Eda is opening outside London for the first time with a 77 sq m (835 sq ft) shop on the third level. The 13,935 sq m (150,000 sq ft) shopping centre will open this Easter.
At Bridgewater House Conrad Ritblat advised Frogmore while Arab Bank was represented by FPDSavills.
EGi News 26/01/00
