Acting for a private investor, Savills has brought to the market the iconic department store building, still known locally by many as Kendals, in Manchester with a guide price of £84.5m, reflecting a net initial yield of 5.07%.
The 387,595 sq ft building occupies a 1.64-acre site and is let to House of Fraser at an annual rent of £4.36m. The retailer has 33 years remaining on its lease. The plot comprises two separate buildings linked by basement passages and footbridges.
Oliver Foster, investment director at Savills, said: “This is a rare opportunity to acquire a prime landmark department store investment in Manchester, which as a city is recognised on a global scale for its retail offer. We expect the long unexpired lease term to House of Fraser and attractive yield to generate high levels of interest among investors in both the UK and overseas.”
Designed by local architect JS Beaumont working with Harrods’ house architect Louis David Blanc, the art deco building dates back to 1939 and is among the city’s most recognisable buildings. It was last sold in 2007 by Irish investment vehicle Sloane Capital.