Aviva Investors has sold Manchester’s Corn Exchange to a Middle Eastern private investor for £40m.
Corn Exchange is a former market hall, comprising a restaurant and leisure venue on the ground, lower ground and first floors, and an aparthotel on the upper floors. It has 18 leases, including Vapiano, Zizzi, and Pizza Express, with an average lease term of 17 years.
Lender Cohort Capital has financed the purchase, providing the £45m short-term bridge facility against the 141,000 sq ft, grade II listed building, as well as a portfolio of other mixed-use UK assets.
Matt Thame, founder of Cohort Capital, said: “Now the ‘Goldilocks’ period of low inflation, rates and growing assets prices has come to an end, having an experienced debt advisor which introduces quality business but also exits existing loans to term debt couldn’t be more important – for lenders and borrowers alike.”
Richard Herring, co-founder at Westfort Advisors who acted for the buyer, said: “Key to the deal’s success was the diversity of the collateral package, the quality of Corn Exchange, and the calibre of the sponsor.”
KLM Real Estate advised Aviva; Cooper Rose advised the purchaser.
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Image © Bruce Adams/Daily Mail/Shutterstock
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