Abrdn sells Manchester office at hefty discount

Family-run property investment firm Yakel has bought an office building in the heart of Manchester from Abrdn Property Income Trust. The Grade II listed 101 Princess Street changed hands in £4.3m deal, representing an almost 50% discount to the £8.1m Abrdn paid for it in 2017. The price is 2.3% below its June valuation and 11.3% down on its March valuation. The 41,096 sq ft block, which has five floors of offices above ground-floor leisure space, is let to three tenants, generating a passing rent of £269,820 per annum. All office floors apart from the third are vacant and have recently been comprehensively refurbished, offering CAT A and CAT B suites, with floorsplates of 5,000 sq ft, ready for immediate occupation. Headline rents on Princess Street are £24 per sq ft. Mark Blyth, deputy fund manager at Abrdn Property Income Trust, said: “In the current market all office sales are challenging, especially when there is a relatively high level of vacancy. We are therefore pleased to have completed this disposal.” Proceeds from the sale will be used to pay down the trust’s revolving credit facility. Colliers represented Abrdn; National Investment Properties acted on behalf of Yakel. Photo from Abrdn