Ares Management is under offer to buy Carlyle Group’s Three and Four Piccadilly Place in central Manchester for around £118m – a 5.7% yield.
Together, the buildings comprise 300,000 sq ft of offices and 25,000 sq ft of shops and leisure use. They form part of the 675,000 sq ft Piccadilly Place campus.
Three Piccadilly Place is now fully let to tenants including NuGeneration, Weightmans, Arup, EC Harris, Starbucks and the NHS Property Services.
Four Piccadilly Place has around 10,000 sq ft of vacant space following an 80,000 sq ft letting to Barclays.
Bilfinger GVA and CBRE are acting for Carlyle; Ares is unrepresented.
On a roll
Manchester has had a bumper 12 months. An active office occupier market has meant prime rents have hit £34 per sq ft and only 77,756 sq ft of grade-A space is currently available, according to Colliers International. This has prompted sizeable investment deals:
- One St Peter’s Square Being sold by Argent and under offer to Deka for £130m.
- Two St Peter’s Square Sold to Deutsche Asset & Wealth for £100m by Mosley Street Ventures, a circa 5.3% yield.
- 3 Hardman Square Sold to M&G Real Estate from Credit Suisse Asset Management for £91.7m, a 5.8% yield.
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