Property investment and development company Helical Bar has acquired Churchgate & Lee House in Manchester for £34m.
Helical Bar purchased the interlinking office buildings from a joint venture between Angelo Gordon and Dunedin Property, who acquired the properties in 2012 for a reported £23m. The off-market deal reflects a net initial yield of 5.7%.
The properties are located on Oxford Street, and provide approximately 250,000 sq ft of office accommodation, at rents between £14 and £17.50 per sq ft. The building are currently 35% vacant.
Duncan Walker, investment director at Helical Bar, said: "Churchgate & Lee House represents a high quality, well located multi-let asset in a market that is starting to show the early signs of improving occupational demand underpinned by economic growth across the UK.
"We believe this asset lends itself well to the Helical model and track record of successfully repositioning and improving assets through intensive management. As such, through improvement of vacant floors and the continued refurbishment of the common parts, we will be able to offer quality accommodation at affordable rental levels that we hope will enable us to secure new lettings in the near term."