M&G Real Estate has confirmed it is to buy 3 Hardman Square in Manchester’s Spinningfields from Credit Suisse Asset Management for £91.7m.
The deal for the 178,508 sq ft block – built in 2007 and let to WorldPay, Towergate Insurance, Michael Page, i2 Office and TLT – would reflect a net initial yield of 5.8%.
Estates Gazette revealed in June that the owners were bringing the block to market with an asking price of close to £100m.
It follows M&G’s £320m purchase of 1 Spinningfields Square, a 500,000 sq ft scheme let to RBS.
M&G bought and sold around £4bn of property in the UK, Europe and Asia in 2014, bringing total transactions to £7.3bn over the past two years.
M&G Real Estate chief executive Alex Jeffrey said: “Our first purchase of 2015 in Manchester reflects our ongoing strategy to reposition our portfolios, adding more quality stock. Over the past two years M&G Real Estate has been one of the most active participants in the property market as our clients have allocated more capital to the sector.
“Capital inflows have been strong in 2014, allowing us to acquire more than £3.2bn of assets with an average deal size of £50m. This saw us entering into exciting new business areas while building on our exposure in those key markets in which we are well-established. We move into 2015 in a strong position, with the benefit of continuing investor and third-party interest and industry-leading investment strategies.”
The purhcase was made on behalf of the M&G Property Portfolio.
Lewis Ellis acted for M&G Real Estate; Credit Suisse Asset Management was represented by Knight Frank.
