Buyers sought for Manchester’s 101 Embankment

A buyer is being sought for 101 Embankment in Manchester, which counts Swinton Insurance and Covéa Insurance among its main occupiers. CBRE has been appointed to sell the landmark grade-A office building, which carries an £80m price tag. It measures 170,653 sq ft across ground, mezzanine and nine floors and is located on Cathedral Approach. The office is held in a special purpose vehicle, which is an English limited partnership owned by a Jersey property unit trust. The vendor would consider either an asset sale or sale of the ELP and JPUT. The pricing, which assumes an acquisition of the JPUT SPV, reflects an 8.45% net initial yield. On an apportioned basis, the offices reflect a 9.07% net initial yield and a capital value of £345 per sq ft. The property’s occupiers generate average passing rent of £31 per sq ft. In comparison, CBRE said prime grade-A rents in Manchester are achieving around £43 per sq ft. Ground-floor ancillary uses, including a Sainsburys supermarket, represent 3% of overall income. There is also a 442-space multi-storey car park let to Q Park, accounting for 18% of overall income. The property has a WAULT of 10.2 years to earliest termination, and is rated EPC B and BREEAM Excellent. In marketing materials for the property, CBRE pointed to “attractive core of income and active asset management potential to add significant value”. In 2017, the office was forward-purchased by M&G Real Estate, West Yorkshire Pension Fund and an Asian investor for £105m. The building was developed by Ask Developments and funded by Tristan Capital’s EPISO 3 fund. View market analytics for the area around 101 Embankment >>