NFU Mutual has exchanged contracts unconditionally on its acquisition of the iconic 106,226 sq ft Chancery Place office development in Manchester City Centre for £57m representing a Net Initial Yield of 5.05%.
Chancery Place is widely regarded as one of the best specified and most iconic Grade A office buildings within Manchester City Centre’s traditional business district. The 15 storey glass tower was developed in 2008 and sits on a unique island site within the upper King Street conservation area and fronting on to Brown Street. The building is let to a high quality tenant line up including Kyocera, Clyde & Co, i2, HSB Engineering, Clearwater Finance, Travelers Insurance and QBE Management Services.
Will Kennon, Director of Capital Markets at CBRE Manchester, commented;
“Chancery Place represents the first evidence of a ‘super prime’ asset being traded in the current investment cycle. The building is a stunning trophy asset providing best in class office accommodation within Manchester’s historic core business district providing an exemplary tenancy line up. There is opportunity to draw upon the rental growth being evidenced across the Manchester occupational market and we are delighted to have secured the acquisition on behalf of NFU Mutual.”
James Porteous, Director of Capital Markets at JLL Manchester, commented;
“Our client had created an outstanding building which has attracted a lot of interest from both UK and International investors. We are delighted with the outcome of this sale which demonstrates the demand for exposure to the regional office markets and Manchester in particular.”
CBRE and Wragge Lawrence Graham represented NFU Mutual with JLL and Jones Day acting for the vendor.