Manchester’s Boulton House to be sold for £9m
Palace Capital had been seeking offers of more than £11.9m for the 77,000 sq ft city centre office block, which it had acquired in 2016 for £10.9m.
The James (M1 Living) has exchanged contracts with Palace Capital to acquire Boulton House for £8.75m, reflecting a net initial yield of 8.7%. The deal is set to complete in July.
The James (M1 Living) is linked to the residential development company The James. The James owns apartment blocks at 7 James Street in Liverpool and 6-16 Dantzic Street in Manchester. The company is developing additional residences in Sheffield and Birmingham.
When CBRE marketed the property last summer for Palace Capital, Boulton House had 10 tenants and generated an annual income of £1.2m. Those leases could be revisited, with the property becoming vacant by June 2025, should that be what The James wishes.
CBRE’s brochure had also touted the development potential of the building, saying that a new-build, 20-storey tower with 272 apartments would be suitable for the area based on a SimpsonHaugh massing study.
While the £8.75m received is less than the guide price, a stock exchange announcement from Palace Capital noted that the figure was in line with the 31 March 2024 book value, but 2.8% below the 30 September 2023 book value.
Steven Owen, executive chairman of Palace Capital, said of the deal: “The disposal of Boulton House demonstrates continuing progress in our disposal strategy and on completion will provide additional cash for returning to shareholders in due course.”
CBRE was the agent for Palace Capital on the deal. Finn & Company acted for The James.
