Posted 27 September, 2011 OBI NEWS
Following the disposal of a number of their assets, Hermes Property Unit Trust has reaffirmed its commitment to Manchester City Centre with the recent acquisition of Citygate Court in Mosley Street which is let entirely to Barclays Bank plc.
Barclays have occupied the 47,000 sq ft retail and office space arranged over six floors with 31 basement parking spaces since 1989. The bank has taken a reversionary lease on the ground floor with an option to renew on the upper floors.
The building was marketed at a price of £8.5M, representing a net initial yield of 8.5 per cent on behalf of Aegon UK by Jones Lang Lasalle.
Acting on behalf of Hermes, Gary Scorah, Investment Partner at OBI Property LLP, commented:
“Hermes had considered a number of properties in the City but believed that Citygate Court was better positioned in the market and would show future resilience. The building offered them a property within Manchester’s traditional core showing a healthy return from the current tenant but with future opportunity to asset manage should the opportunity present itself.”