M&G offers half-price sale on Manchester office block

M&G has hired CBRE to sell a grade-A multi-let office block in a core Manchester city centre location near Piccadilly railway station. The investor is seeking offers over £9.5m for One Portland Street. If sold at the asking price, it would reflect a net initial yield of 11.8%. According to Radius data, the office block was acquired in 2017 for £21m, prior to M&G’s demerger from Prudential, so the current asking price represents a more than 50% discount on that transaction value. The building provides 59,181 sq ft of space over ground and six upper floors, together with 12 basement car parking spaces. The block is a home to tenants including the Hungarian Embassy, the Portugese Consulate and ADP Architecture, while Tesco and Costa Coffee occupy the ground floor. Around 40% of the building is currently vacant, with an average asking rent of £25 per sq ft. There is also the potential to redevelop the empty floors to deliver fully fitted suites. Originally developed in 1974, the building underwent a comprehensive refurbishment in 2005. More recently, M&G has invested in a full refurbishment of the first floor along with ground-floor enhancements including an extended entrance and a double-height reception area. The works also included basement upgrades which have enhanced the building’s amenity and end-of-journey facilities.