New York-listed REIT WP Carey has acquired an office complex housing the Department of State for Communities and Local Government, located in Manchester for some £40m (€55m).
The facility is leased to the government department on a 15-year, triple-net lease and is at present occupied by the UK’s tax department, which has consolidated its staff from several locations into the building.
Manchester is the UK’s third largest city, with the most active office market outside of London.
The facility is located in Salford, situated to the west of the city centre in a key regeneration area.
The redevelopment in the area is expected to increase the attractiveness of the location and have a positive impact on the local real estate market.
Jennifer Lucas, director of WP Carey, said: “The transaction demonstrates our ability to source and complete attractive deals in key European markets.
“The UK is the second largest European economy and has a AAA-rating. Together with a government lessee, we believe we have secured a strong, long-term covenant.”
