Manchester’s Dalton Place brought to market for £44m 

Owned by Tesco Pension Fund, the 76,800 sq ft building is let to WeWork until 2038. 

Savills has been instructed to sell the freehold of Dalton Place, located on John Dalton Street in Manchester city centre, and is seeking offers in excess of £44.3m. 

If the six-storey asset achieves its asking price, the sale would reflect a net initial yield of 5.75%. 

Oliver Foster, investment director at Savills Manchester, said: “The current owners undertook a comprehensive redevelopment in 2018 to deliver a best-in-class refurbishment with fantastic ESG credentials.  

“Alongside a secure income stream to one of the world’s leading serviced office providers, the investment will offer a genuine opportunity for investors to capture both rental and capital growth.” 

WeWork signed a 20-year lease for the entirety of Dalton Place in 2018 following the refurbishment. 

The building generates around £2.7m in rent annually. 

The John Dalton Street office is one of four WeWork sites in Manchester. The others are 1 St Peter’s Square, The Hanover Building and No1 Spinningfields. 

The co-working provider had been eyeing up space at Boultbee Brooks Hyphen on Mosley Street but pulled out of the deal in 2020.