Mayfair Capital buys 86 Deansgate

UK real estate investment manager Mayfair Capital has placed 86 Deansgate in central Manchester under offer with owner Phil Hodari for a sub-6% yield.

It is understood that Mayfair offered around £15m for the 47,800 sq ft multi-let property, which has restaurant operators Las Iguanas and Café Rouge at ground floor. The deal is the latest in a string of prime office investment transactions in Manchester in recent months, as funds look to place cash in more affordable destinations outside London.

The office building has planning permission for a 20,000 sq ft extension. Mayfair is expected to redevelop and refurbish the property.

Tenants include Cheetham & Mortimer and Help Your Claim.

86 Deansgate is owned by Brooklawn Deansgate, a company controlled by Phil Hodari, one of the owners of online retailer DP Data Services, based in Manchester.

London-based Mayfair Capital has £350m of its own funds under management and £150m of asset management mandates.

CBRE acted for Hodari.

All parties declined to comment.