Abrdn seeks £53m for First Street Manchester office
The current guide price is £20m less than what the global asset manager was asking for last year.
Abrdn put the 175,000 sq ft One Tony Wilson Place on the market last May for £73m, a deal that would have represented a net initial yield of 5.75%. The current price of £52.5m represents a net initial yield of 8%. JLL is marketing the property.
The current guide price is also around £13m less than Abrdn paid for the building when it acquired it from Patrizia in 2016.
The price cut comes just months after a JLL report noted that while Manchester’s office investment market was the most active among the Big Six, it had seen a 40% decrease from 2021, dropping from £707m to £421m in sales volume.
One Tony Wilson Place has open plan office floorplates of 25,500 sq ft and is let to various tenants including Auto Trader, Jacobs, and Ford. There is just 12,800 sq ft on the third floor that is vacant. Current annual income from the property is £4.5m.
Designed by BDP, the building has an BREEAM rating of Excellent. The property was developed by Ask.
JLL is marketing the long leasehold of One Tony Wilson Place, which has nearly 250 years remaining at a peppercorn rent. The owner of the long leasehold could reserve up to 207 car parking spaces within the nearby Q-Park car park for sub-tenants of One Tony Wilson Place.
The freehold of One Tony Wilson Place is owned by Southside Regeneration.
Abrdn and JLL have been contacted for comment.
