Ares closes deal on Piccadilly Place purchase

LA-based Ares Management has confirmed that it has acquired Carlyle Group’s 300,000 sq ft office and retail complex at Piccadilly Place, Manchester, for around the asking price of £117m.

Place North West reported in January that the US fund manager was close to agreeing to buy the buildings.

The asset is made up of Three and Four Piccadilly Place, and a three-storey basement car park.

Carlyle bought the wider complex from Argent in 2007 for around £90m and funded the development of Four Piccadilly Place.

The offices are 95% let, and tenants include NuGen, Weightmans, Barclays, NHS, EC Harris, Arup, Orega and Egencia.

Retail tenants include Anytime Fitness, which just opened its doors at Piccadilly Place last month, as well as Starbucks and Pita Pit.

Wilson Lamont, partner at Ares Management, said: “The market fundamentals in Manchester look increasingly attractive, and we believe Piccadilly Place, which is ideally located next to a major transportation hub and in a high traffic area of the city, is set to benefit from this strategically important and improving location. We see significant potential to make a number of improvements and add value to the property including filling vacant space and improving the management of the properties.”

Ares was advised on the transaction by Property Alliance Group and King Street Commercial.

Alliance will asset manage the buildings on behalf of Ares. Ares and Alliance are also in a joint venture partnership on the Trident business park at Manchester Airport.

Bilfinger GVA and CBRE acted for Carlyle.