Aviva Investors has bought a retail parade of six units at Lancaster Buildings in Manchester city centre for £7.1m, representing a net initial yield of 6.82%.
Lancaster Buildings is located at 65-77 Deansgate within the St Ann’s Square conservation area. The six self-contained ground floor retail units total 12,199 sq ft and are occupied by a mix operators including Barburrito, Caffé Nero, Subway, Cancer Research, Regis and Castle Galleries. The units generate a total annual income of £510,000.
The parade was sold by CBRE’s capital markets team in Manchester on behalf of holding companies Lancaster Building Nominees (No.1) and Lancaster Building Nominees (No.2).
Peter Rowe of KLW Property advised Aviva on the purchase.
The office floors above the retail have been previously sold by way of long leases
Colin Thomasson, executive director of Capital Markets at CBRE’s Manchester office, said: “We were delighted to have arranged the sale of Lancaster Buildings to Aviva Investors. The property is in an excellent location close to a number of top retail destinations and high end leisure operators in the heart of Manchester city centre. The deal is indicative of the investor appetite for retail investment opportunities within central Manchester.”