German investor AM Alpha has made its Manchester debut with the acquisition of the Zenith Building from TH Real Estate.
The global real estate family office has exchanged to buy the 74,207 sq ft office building for £23m – a net initial yield of 7%. Knight Frank was instructed to sell the building a year ago for £28m. The price paid represents a 17.9% discount on the original asking price.
The striking office building is let to 10 tenants including Cushman & Wakefield, AEW Architects, Lexington and Palatine Private Equity.
The average rent is £23.50 per sq ft and the building, which was built in 1968 and was known as the Post Office Building before its grade-A redevelopment in 2007, generates an income of £1.8m pa.
TH Real Estate bought the building from a private investor in 2011 for around £25m – a net initial yield of around 7%.
CBRE advised AM Alpha.
• To send feedback, e-mail louisa.clarence-smith@estatesgazette.com or tweet @LouisaClarence or @estatesgazette
