Land Securities sells Printworks for £108m

Land Securities has completed the sale of the 385,000 sq ft leisure asset in central Manchester to DTZ Investors for £108m.

The centre is anchored by the 20-screen Odeon IMAX cinema and contains 17 food and drink venues, including Tiger Tiger, Hard Rock Café, Yates, Wetherspoons, Wagamama and Nandos, together with a health club.

JLL was appointed late last year to market the property at a guide price of £98m. Land Securities paid £94m for the asset at the end of 2012.

The scheme generates a net annual income of £6.75m, with over 99% of the income secured to national multiple covenants.

Polly Troughton, head of leisure portfolio at Land Securities, said: “We have created value at The Printworks through asset management, resulting in the lowest level of vacancy rates for a number of years. This sale crystallises the increased value the team has delivered.”

Tony Brothwell, fund manager at DTZ Investors, said: “We have been looking to gain exposure to the vibrant central Manchester retail and leisure market and The Printworks represents a rare opportunity to acquire a major freehold investment located in the core of the City on an attractive yield basis.”

JLL acted for Land Securities; Cortex Partners for DTZ Investors.