Ashtrom picks up Manchester’s Fourways House for £20m+
The owner of Exchange Flags in Liverpool has bolstered its North West portfolio with the acquisition of the grade two-listed office block in the Northern Quarter.
Israeli investor Ashtrom Properties purchased Fourways House from XLB Property and Pictet Alternative Advisors, who had put it on the market back in June for a £22.4m guide price. It is understood that Ashtrom spent more than £20m on the building.
Fourways boasts 50,000 sq ft of workspace and 11,000 sq ft of retail and leisure space. It has undergone a series of refurbishments since 2019, with work totalling £5.3m. Today, the 120-year-old building has a BREEAM score of Very Good and an EPC A rating.
At 95% let, Fourways brings in nearly £1.8m a year in rent with an average rent of £30/sq ft. Current tenants include Lacoste, Cundall Johnston, RSK Group, and VEGA.
This marks the second Manchester acquisition for Ashtrom, which purchased No8 First Street in 2021. The company’s UK portfolio also includes Great Western Arcade and Colmore Gate in Birmingham and Central Square in Leeds. Ashtrom’s global portfolio comprises 7.5m sq ft of offices, shopping centres, and warehouses.
“Manchester is one of the UK’s most exciting and fast-growing cities, and this acquisition reflects our continued belief in its long-term potential,” said Guy Lewinsohn, chief executive of Ashtrom Properties in the UK.
“Fourways House is a unique building with strong fundamentals and a thriving tenant community, perfectly aligned with our strategy of investing in high-quality, well-located assets in major cities,” he continued.
“We look forward to being part of Manchester’s ongoing growth story and continuing to expand our presence in this important market.”
Ed Jackson, head of direct real estate in the UK for Pictet said: “We are pleased to have sold Fourways into an improving market, having achieved our business plan milestones, and passed on the building to an institutional investor.”
Pictet and XLB will use the funds raised from the sale to support their investments in 35 Dale Street and The Tootal Buildings in Manchester. The duo had actually acquired 35 Dale Street, The Tootal Buildings, and Fourway House in the same deal in 2018 – having given £119m to Helical for all three.
Ashtrom was unrepresented on the deal with Pictet and XLB. The vendor was advised by CBRE, ACRE, and CMS.
