80 Mosley Street up for sale for £14.2m

The nearly 32,000 sq ft Manchester office block sits in the heart of the city centre, bordering St Peter’s Square.

Institutional investor Mayfair Capital bought 80 Mosley Street for £12.1m in 2017 from Bilsdale Properties, the manager of the Walker Family Trust. The deal represented a net initial yield of 5%.

Agency CBRE has put the freehold of the city centre property on the market on behalf of owner Mayfair, asking for offers in excess of £14.2m, reflecting a 6.5% net initial yield.

The brochure notes that a purchase at the quoted price would reflect a 24% discount to H1 2022 pricing, which would likely have been around £18.5m, reflecting a net initial yield of 5% and £584 per sq ft.

80 Mosley Street is let to 11 companies, including London Stock Exchange-listed One Heritage Property Development and office agency OBI Property.

Other tenants include tech recruitment firm Burns Sheehan and chartered accountancy practice Moore & Smalley. It has a current vacancy rate of around 10%, representing 3,449 sq ft of the space.

The building is arranged over basement, ground and nine upper floors, with floorplates ranging between around 2,100 sq ft and around 3,700 sq ft “with the flexibility to sub-divide”, according to the sales brochure.

There is a weighted average unexpired lease term of four years, with 2.7 years to break, and the property generates a net passing income of £987,677 per year based on a passing office rent of £30.15 / sq ft.

“80 Mosley Street provides an exceptional opportunity to acquire a well-let, best-in-class, Grade A office building located in a 100% prime central Manchester location overlooking St Peter’s Square,” CBRE states in the brochure.