Aviva puts £35m price tag on Manchester’s 11 Portland Street
The investor is looking to offload the 160,000 sq ft office, which is currently 99% let.
Aviva has appointed CBRE to market Manchester’s 11 Portland Street with a guide price of £35m.
A sale at asking price would reflect a net initial yield of 10% and a capital value of £220/sq ft, according to marketing materials.
Aviva has owned the building for 25 years and undertook a comprehensive refurb in 2017. It has a weighted unexpired lease term of just shy of five years.
Bank of Scotland, part of Lloyds Group, is the anchor tenant at 11 Portland Street, occupying five floors totalling 95,000 sq ft.
While the building is currently almost fully let, microchip designer Arm has signed to relocate from around 30,000 sq ft at 11 Portland Street to 69,000 sq ft at St Michael’s. The firm will exercise its lease break next year.
Last month, CBRE was appointed to sell 1 Portland Street for M&G. The investor is seeking £9.5m for the 60,000 sq ft block, reflecting a NIY of 11.8%.
Didn’t realise Arm Holdings were more than doubling their space in the city. That’s excellent. Manchester is such a Tech powerhouse these days
By Bob
Hmmmm… relatively cheap then, but even a 2017 refurb won’t potentially be up to today’s requirements and then there’s the loss of tenant in a fifth of it. They’ll probably need to take a haircut on that guide price is my bet. It will be a good test of where the market is at. .
By Sceptic
BTR all day long!
By Resi-Rob
Primed for a hotel i heard
By Andy S