Henderson Global Investors has sold the regional headquarters of Barclays Bank in central Manchester to Morley Fund Management at a yield of 6.65%.
The 47,000 sq ft Citygate Court on Mosley Street has been sold for £12m, including a premium linked to an outstanding rent review.
The self-contained building is let to Barclays, which is currently paying £14 per sq ft, for a further ten years.
Jones Lang LaSalle advised Henderson Global Investors, while Christopher Dee advised Morley Fund Management.
The sale is the latest in a series of high-profile investment deals on Mosley Street this year.
During the summer, Irish investors purchased the site of the former Eagle Star House on Mosley Street from developer Maple Grove for £43m.
Bruntwood also purchased two large office buildings on the street from Royal Bank of Scotland for an undisclosed sum.
Chris Jones, partner at Christopher Dee, said: “Off a base rent of only £14 per sq ft, the capital value of the investment breaks back to just over £250 per sq ft. This compares favourably against other investments in the immediate area.”
References: EGi News 09/11/04
