M&G Real Estate has bought 101 Embankment, the 165,000 sq ft office built at Salford’s Greengate by Ask Developments, Carillion and Tristan Capital Partners, for £105m, a net initial yield of 5.3%.
101 is fully let to insurance firm Swinton on a 10-year lease. The building includes a 442-space car park, let to Q-Park for 35 years. The office completed in January, and Ask is on site with sister office 100 Embankment.
M&G has made the purchase on behalf of a three party joint venture, made up of West Yorkshire Pension Fund and an Asian investor.
Chris Webb, director at Tristan Capital, said: “The dire shortage of Grade A offices in the centre of Manchester made this development particularly attractive. Salford Council’s vision and progressive approach have been integral to the successful regeneration of the city centre Embankment Estate. However further work needs to be carried out; there is still insufficient space to satisfy demand in these thriving business communities, which gives us good visibility as we move into the second phase of this project.”
John Hughes, managing director at Ask Real Estate, said: “The recent landmark letting to Swinton has established the appeal of the Embankment scheme to major employers, and with the second phase now committed, this additional 166,000 sq ft building is set to enhance the city region’s growing business base providing further opportunities for potential occupiers and investment funds alike.”
JLL advised the vendors, while CBRE advised M&G Real Estate. Embankment was brought forward in partnership with Salford City Council and Network Rail.