Manchester Business Park primed for sale

The asking price for the 190,000 sq ft asset, close to Manchester Airport, is £19.5m.

Working on behalf of fixed charge receivers, Savills has been instructed to find a buyer for the four-building development on Aviator Way. The scheme is a ‘headquarters’-style development, with a small number of blue-chip tenants.

At present, MBP is 94% let, bringing in slightly more than £3m a year in rent. A sale at the asking price would represent a net initial yield of 14.57%.

As set out in the sale particulars, there is £21.6m of total contracted income to lease expiry. The average unexpired lease term is 7.1 years, with 4.5 years until the earliest tenant break option.

The buildings are split across two plots, close to both the £1bn MIX Manchester development zone, for which a strategic regeneration framework was signed off in November, and Junction 5 of the M56. The site in total is 9.13 acres, and, said Savills, has strong underlying industrial land values.

The park was developed by Goodman, and was bought by Kuwaiti firm Dimah Investors, a subsidiary of Al Imtiaz Investment Group, in 2018 for £54m, reflecting a yield of 6.15%.

As the agent outlines, there is a strong tenant roster, including PZ Cussons, Costain, Regus and Emirates, although Place understands the airline has reduced the volume of space it occupies at the site.