Co-op sells One Angel Square for £142m

RREEF Real Estate, part of Deutsche Bank, has acquired a 51% share in the Co-operative Group's new headquarters in central Manchester.

The acquisition was made on behalf of RREEF's open-ended real estate fund, grundbesitz europa. RREEF said in statement that a foreign institutional investor, understood to be London-registered Chinese fund Ginkgo Tree Investment, advised by RREEF Real Estate, acquired the remaining 49% of the property.

One Angel Square was completed in December 2012, and comprises 329,218 sq ft of offices with 151 parking spaces.

The property is leased to the seller, the Co-operative Group, on an index-linked lease until 2038, with an option to extend the lease beyond 25 years. The deal represents a net initial yield of less than 6%.

A small number of staff moved in this week – the remainder will move in between now and the summer. There will be 3,500 people working in the building when it is fully occupied.

The building was awarded BREEAM 'outstanding' sustainability status, and has been awarded an A+ Energy Performance Certificate, given only to buildings with zero carbon emissions.

Georg Allendorf, head of RREEF Real Estate in Germany, said: "Sustainability was the driving force behind the acquisition of One Angel Square – from the location of the NOMA redevelopment to the property's trend-setting architecture, its sustainable operations and its overall commitment to sustainability."

The building forms the centre piece of NOMA, an £800m mixed-use development scheme on 20 acres.

David Pringle, director of NOMA, added: "The sale and leaseback of One Angel Square will release the value tied up in a non-trading asset, enabling the Co-operative Group to reinvest these funds in delivering its strategy of growing its core trading businesses to best serve members and customers.

"The building is market leading in terms of construction, location and facilities, and is the most environmentally friendly large office space in Europe. With future-proofed design and build, coupled with outstanding transport links, One Angel Square sits at the heart of NOMA, the 20-acre redevelopment set to transform the Northern district of Manchester city centre over the next 10 years."

RREEF's grundbesitz europa fund has €3.7bn in assets under management, including 44 properties of which six are located in the UK and seven are certified to be sustainable, or are in the process of becoming certified.

One Angel Square was designed by 3D Reid and built by Bam.

Jones Lang LaSalle and WHR advised the Co-op.