BAM’s Metro fully let and on market
German shipping line Hamburg Süd has taken the last remaining floor of BAM Properties’ Metro office development at Salford Quays, which the developer is now marketing for sale.
Hamburg Süd, which has been in operation since 1871, agreed a 10-year lease on 17,700 sq ft. The letting follows BAM’s relocation of its North West office to Metro, taking the second floor, also 17,700 sq ft. The 72,500 sq ft office was completed in 2008 and is now fully let. Other occupiers include engineering giant Jacobs and IT consultant Insight Direct.
BAM Properties is now offering the resultant investment for sale for offers in the region of £19.25m to achieve a net initial yield of 7.5% through agents JLL.
Paul Smith, development manager at BAM Properties, said: “It is particularly gratifying to have secured the letting to Hamburg Sü̈d against a strong short list of alternative sites that were under consideration. Hamburg Sü̈d has a long standing association with Salford Quays with links back to Manchester Liners and Furness Withy and we are delighted that Metro will now play a part in this important heritage. It is also great that we will be relocating to a building developed and built by our colleagues in BAM.”
Joint letting agents CBRE and Canning O’Neill acted for BAM Properties and Altus Edwin Hill represented Hamburg Süd.
Hamburg Süd is relocating from Furness House, Furness Quay, Salford Quays. BAM North West is relocating from New Court, Regents Place, Regent Road, Salford.
BAM must be desperate to offload this building. It is by some stretch the ugliest office block developed in Greater Manchester in recent times. No wonder it’s taken the best part of a decade to fill up including a substantial letting to the developers, BAM, themselves.
By Sore eyes