Abrdn launches £73m Manchester office sale
The 176,000 sq ft Number One First Street, which is let to occupiers including Auto Trader, Jacobs and FCE Bank, has been put on the market.
JLL is selling the Manchester office building on behalf of its owner Abrdn, and is seeking offers in excess of £73m, according to marketing documents.
This represents a net initial yield of 5.75% and a reversionary yield of 7.30%.
Designed by BDP and developed by Ask, Number One First Street offers 25,500 sq ft floorplates and is let to the aforementioned three tenants across six leases.
Auto Trader occupies a total of 76,000 sq ft across three floors. FCE Bank occupies 62,616 across three floors, while Jacobs has 23,500 sq ft on the ground floor. 12,700 sq ft on the third floor is the building’s only vacant space.
Number One First Street has a WAULT of 4.4 years to expiry and 3.5 years to tenant break options.
At present, the building generates £4.4m of rent a year at an average of £25.64/ sq ft.
Rents elsewhere within First Street have moved from £23.50/ sq ft in 2011 to £32.50/ sq ft in 2022, according to JLL.
This is lower than the £42/ sq ft being quoted for some new office stock in Manchester city centre.
Abrdn acquired Number One First Street from German fund Patrizia in 2016 for around £66m.
Elsewhere, Abrdn is also looking to sell Manchester’s Sunlight House for £38m and No5 St Paul’s Square in Liverpool for £35m.