Soapworks, the landmark Salford Quays development that’s home to TalkTalk and the Home Office, is on the market.
The Carlyle Group has instructed CBRE to seek offers in excess of £55.5m for the 400,000 sq ft development, where the first two phases, totalling around 230,000 sq ft, are fully let.
The former Colgate-Palmolive factory has a weighted average unexpired lease term of about 10 years and delivers an annual rental income of circa £4m. Average passing rents are £16.50 per sq ft.
The site offers potential for further refurbishment or redevelopment at block D, where there is an opportunity to develop a further 160,000 sq ft of offices.
Carlyle acquired the redundant industrial site in October 2008 through its third European real estate fund, Carlyle Europe Real Estate Partners III, which closed in June 2008 having raised €2.2bn (£1.7bn) of equity.
In conjunction with its joint venture partners Nikal and Abstract Securities, it secured planning approval for the mixed-use scheme in 2010.
At the time of construction in 2013, the principal Soapworks building – comprising 210,000 sq ft of grade A offices – was the largest speculative office scheme outside London and was supported by a £6m loan from the North West Evergreen Fund.
The first two phases completed in November 2014 and were 90% let by August 2015. Tenants include TalkTalk, the Homes Office and MWH Global. The 8.4-acre site is part of the Media City regeneration area, which is also home to the BBC and ITV.
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