Chancery Place sold to NFU

NFU Mutual has been confirmed as the buyer of the 106,000 sq ft Chancery Place in Manchester city centre, with a £57m purchase price reflecting a 5.05% yield.

Contracts for the sale have now been exchanged. NFU was tipped as the frontrunner in the race to buy the office from Alanis Capital in August.

Chancery Place, which is off King Street and Spring Gardens, was put on the market for £52.1m earlier this year. The building is currently fully let and tenants include Clyde & Co, HSB Engineering and Clearwater Finance. The property brings an income of £3m a year, with a rental value of £28/sq ft.

The sale of St James' House to BA Pension Fund in June for £21m represented a 6.5% yield, while the purchase of One Piccadilly Gardens by Legal & General in July for around £75m gave a 5.75% yield.

CBRE and Wragge Lawrence Graham represented NFU Mutual, with JLL and Jones Day acting for the vendor.

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