Developer Capital & Centric has acquired a 22,000 sq ft office building in Manchester city centre in an off-market deal from a private individual for near to £6m, reflecting a net initial yield of 5.75%.
The building, 15 Quay Street, also known as Kabel House, is partially let to Jelf Insurance and Uniregistry, a web services provider. One floor of 3,950 sq ft remains vacant.
The acquisition represents an opportunity to boost rents in the building, with rent currently at around £16/sq ft, but other assets on Quay Street demanding up to £24/sq ft.
Tim Heatley, co-founder of Capital & Centric, said: “As a regeneration-focused developer this isn’t the sort of opportunity that you’d usually associate with Capital & Centric but we can apply our skill set in diverse investment and development scenarios plus we are always looking for opportunities to expand our portfolio. By pro-actively managing the building through a number of initiatives, we are confident that we will further enhance the offering at 15 Quay Street.”
Commercial Properties acted on behalf of Capital & Centric.
Goodall Investments acted on behalf of the private investor.