Bruntwood has disposed of its first major asset, selling 1 New York Street in Manchester to Invesco Real Estate, as revealed by Estates Gazette.
Invesco has bought the 111,000 sq ft building in Manchester city centre for £42m, understood to reflect a net initial yield of 6.5%.
The building, which Bruntwood completed in 2009, was the firm’s first major new-build development.
Chris Oglesby, chief executive of Bruntwood, said: “Bruntwood has grown through buying problem buildings from other companies and turning them into high-quality investments. The difference in pricing between prime investment and those problem buildings has never been wider. This sale is a key part of our growth and diversification plans. We are actively looking at expanding our customer base in Manchester through significant new investment in the science and technology sectors, as well as seeking expansion opportunities in Birmingham and Leeds.”
Toby Simon, director of fund management for Invesco, said: “The property complements our fund profile well by focusing on strong real estate fundamentals from high quality buildings in core locations.”
WHR Property Consultants acted for Invesco; Jones Lang LaSalle acted for Bruntwood.
daniel.cunningham@estatesgazette.com
