Kinrise sells 1 Central Street in Manchester
MGTS St Johns High Income Property Fund has completed an investment purchase of the 26,000 sq ft office building near Albert Square, in a deal that represented a yield of less than 5%.
Prime yield in Manchester was listed at 5% in the fourth quarter of last year, according to Avison Young’s latest Big Nine report. Prime yields are currently being tracked at 4.5% in Manchester, according to Savills.
The price of the deal for 1 Central Street was not disclosed. Kinrise, formerly LJ Group, purchased the building for £7m in 2015 from Property Alliance Group.
Subsequently, Kinrise worked with OBI to conduct a refurbishment of the grade two-listed building, creating a new reception, WC facilities, lift, video intercom entry system, and bicycle storage area with showers. Kinrise also upgraded the workspaces and lighting.
The five-storey 1 Central Street is fully let, acting as the headquarters for Castore. The sports fashion brand signed a 13-year lease for the property last year.
OBI and Carrick Real Estate represented Kinrise on the deal. Savills acted for MGTS.
“It has been a privilege to represent Kinrise on the sale of this fantastic building,” said Scott Gemmell with the transactions and asset management team at OBI.
“Securing a yield of sub 5% is a testament to the quality and location of this asset, which is insulated by an incredibly robust investment market,” he continued.
Gemmell’s colleague on the transaction and asset management team, Andrew Cowell, described how OBI’s work with Kinrise on 1 Central Street’s refurbishment helped lead to the sale.
“Our workplace consultants and interior designers have created an inspiring workspace that is sympathetic to the character of the building, and our building consultants applied their expertise, restoring another one of Manchester’s most iconic grade two-listed buildings,” Cowell said.
The sale of 1 Central Street is the second property offloading in Manchester by Kinrise this year. In January, it sold Canada House to Grosvenor in a £22m deal. The company has been turning its attention to Liverpool, purchasing the historic Martins Bank Building for around £16m last year.