Schroders has appointed CBRE’s planning team to review its strategic options to maximise the potential of the City Tower in Manchester.
It is expected that the 615,000 sq ft tower – bought at a yield of just under 7% – could see higher-density residential redevelopment.
Schroders bought the tower from Bruntwood for £132m in May, through Immobilien Europa Direkt, Schroders Real Estate Investment Trust and Schroders Property Fund.
Bruntwood had completed a £56m refurbishment of the estate, and completed the sales process in 10 days.
CBRE chairman of UK planning Stuart Robinson said: “The acquisition of City Tower represented a major investment by Schroders into Manchester city centre and paves the way for significant value to be added to this landmark scheme. Rather than focus inwardly upon City Tower itself, Schroders is keen to work collaboratively with local businesses, landowners, the city council and city centre management company CityCo, to improve the wider environment and capitalise upon the exceptional location of the asset.
“We are currently reviewing a number of options to maximise the potential of this exciting and unique opportunity within the heart of Manchester.”
chris.berkin@estatesgazette.com
