The 63,000 sq ft Old Trafford office block has been bought by Cadence Real Estate, backed by a syndicate of investors, for £6.5m.
The building has been acquired from a Self-invested Personal Pension set up by principals of law firm Horwich Farrelly, which since the previous sale has expanded to occupy 10 of the its 11 floors. It had always been leased out on commercial terms, and the firm will remain in occupation.
The majority of the floors at Alexander House, which sits on Talbot Road between the football and cricket grounds, have been refurbished in recent years. The investment produces an income return of 9.8% on expiry of the rent-free period on the fourth floor, Cadence said.
Robert Howe, director of Cadence, said: “This investment is an excellent acquisition for our investors. It provides strong income in a location that has improved dramatically with the development of a number of new residential and retail schemes in the immediate vicinity. Whilst the property has been acquired as an office investment, the value is underpinned by alternative use value.”
Cadence and its investors were advised by Avison Young. Principal Dan Crossley said: “Cadence carried out a considerable amount of due diligence into the location and future prospects of the asset prior to securing and the opportunity proved to be a perfect match for their current requirements.
“The investment provides an excellent, stable return as well as excellent alternative use prospects.”