The 470,000 sq ft Rylands Building on Market Street, occupied by Debenhams, has been sold by Capreon to AM Alpha for £87m, a yield of around 5%.
The listed corner block next to the Market Street Metrolink tram stop in Manchester is let to Debenhams until 2039.
The deal is the first since Capreon was formed by the Noe Group, following its split from BMO Real Estate.
The building on the corner of Piccadilly Gardens was built as a warehouse by the Rylands textile company in the 1800s, and was designed by Fairhursts.
Martin Lemke, managing director at AM Alpha, said: “With a focus on well-located inner city opportunities with an immediate or near-term asset management angle this investment fits perfectly into our strategy. Within Europe, we continue to actively seek further value-oriented investments across all sectors in UK, western and southern Europe also in second tier cities.”
AM Alpha also owns the Zenith Building, which was acquired in June.
Muller International and Pinsent Masons advised AM Alpha and Capreon was advised by CBRE and CMS.