CBRE appointed to review City Tower
Following its £132m acquisition of City Tower in May this year, Schroders Property Investment Management has appointed CBRE's planning team to develop strategies for maximising the potential of the Manchester city centre office, retail and hotel asset.
CBRE has been appointed to assist Schroders in the preparation of a comprehensive strategy for the long-term management and enhancement of City Tower, acquired from Bruntwood.
CBRE said the remit for this work seeks to develop strategies looking not just at the asset, but also the wider surrounding area.
The Manchester studio of architecture practice Sheppard Robson has also been appointed to work on the City Tower project.
Stuart Robinson, executive director and chairman of UK planning at CBRE, said: "The acquisition of City Tower represented a major investment by Schroders into Manchester and paves the way for significant value to be added to this landmark scheme. Rather than focus inwardly upon City Tower itself, Schroders is keen to work collaboratively with local businesses, landowners, the City Council and city centre management company CityCo, to improve the wider environment and capitalise upon the exceptional location of the asset. We are currently reviewing a number of options to maximise the potential of this exciting and unique opportunity within the heart of Manchester."
Immobilien Europa Direkt (IED), an investment group of Zurich Investment Foundation and managed by Schroders Property acquired a 25% interest in the property alongside Schroders Real Estate Investment Trust (SREIT) and Schroders Property Fund (SPF) for a total price of £132 million. The price reflected a headline net initial yield of 7%.
The mixed-use scheme comprises 615,429 sq ft of office, retail, leisure and hotel accommodation and 456 car parking spaces on a three acre island site. The property is let to over 100 tenants including the National Institute for Health & Care Excellence (NICE), the Ministry of Justice, The University of Law and Aegis Outsourcing (UK). Former owner, Bruntwood is retained as property manager for two years.
