Manchester-based Bruntwood is close to completing its first major asset sale.
The family-owned firm is in advanced talks with US-based investment manager Invesco to sell its 111,000 sq ft 1 New York Street office scheme in central Manchester for around £40m – a net initial yield of 6.5%.
Sources suggested that Bruntwood will use proceeds from the sale to purchase and potentially redevelop the 209,000 sq ft Centre City Tower in Birmingham.
The building is seen as a major redevelopment opportunity owing to its proximity to New Street Station. It is being sold by Jones Lang LaSalle after being placed into receivership last March. Bruntwood is expected to pay just under the £22m asking price.
One New York Street, which Bruntwood developed in 2009, was the firm’s first major new-build project.
The developer’s circa 6m sq ft portfolio is heavily weighted towards refurbished and redeveloped office space. The group has sold a number of smaller assets over its 35-year history, but none on the scale of 1 New York Street.
Jones Lang LaSalle is acting for Bruntwood; WHR Property Consultants is advising Invesco.
? BP Pension Fund has put its 4 Hardman Square office building at Manchester’s Spinningfields up for sale through niche agency Christopher Dee. The fund is seeking £25m – a 6.15% yield – for the 58,000 sq ft office and retail building.
