Bruntwood Estates has this week agreed a multi-million pound deal to acquire Royal Bank of Scotland’s central Manchester portfolio.
The portfolio includes five freehold offices totalling 250,000 sq ft which will be refurbished, including the former NatWest offices in Lowry House on Spring Gardens and the RBS buildings on Mosley Street.
The bank is also leasing back the NatWest and RBS branches in Lowry House and 54 Mosley Street.
Under the deal, Bruntwood is taking over the liability on 50,000 sq ft of leaseholds properties and dilapidations liabilities on another 20,000 sq ft.
RBS has surrendered leases on 30,000 sq ft in three other buildings owned by Bruntwood.
The terms of the deal have not been disclosed but local agents estimate that with vacant possession the buildings would be worth about £15m. Bruntwood already owns about 20% of Manchester’s office stock.
RBS, which is relocating to 500,000 sq ft at the Spinningfield scheme in Deansgate, is not expected to vacate the buildings until late 2005.
References: EGi News 01/09/04
