Posted 26 October, 2015 OBI NEWS
Acting for NFU Mutual Insurance Society, OBI Property is delighted to confirm that it has let the 12th floor of Chancery Place in Manchester city centre to Colliers International at a headline rent for the Manchester office market of £34 per sq ft. The deal sets a new record office rent for the city.
Colliers will relocate its 45-strong Manchester team from No.1 Marsden Street by the end of the year, taking 7,786 sq ft on a 10 year lease.
The letting means Chancery Place has now reached 100% occupancy with the 14-storey building home to tenants such as; Kyocera, Clyde & Co, HSB Engineering, Clearwater Finance and QBE.
Chancery Place is located fronting Brown Street, within the King Street conservation area, and was originally the location for the Scottish Provident building.
The plot was bought by a consortium of Irish developers in July 2006 for £9.5m and the property was completed in 2008.
NFU Mutual acquired the 106,000 sq ft, Grade A office building from Alanis Capital in August 2014 for £57m, which at the time reflected a net initial yield of 5.05%.
On the deal, David Hidderley of NFU Mutual, said: “As a prime core office building in the heart the Manchester city centre, we had a great deal of interest in the remaining space at Chancery Place and I am delighted to be able to announce Colliers International as the final occupier, completing full occupancy for the building. This is a landmark deal for Manchester and it is testament to the quality of the space and the prime location of the building that we were able to achieve a new headline rent for the city – this deal further underlines Manchester’s standing as a top performing regional market in the UK and we believe it is only the beginning of the story in terms of rental growth for Manchester city centre.”
Colliers International represented itself in the deal. OBI Property and CBRE acted for NFU Mutual.