Debenhams

Debenhams site sold for £87m

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.

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It would be good if AM Alpha can agree a refurbishment plan for the building. It’s looking so tired and tatty.

By Raj

Hope the dump of a shop goes the way of BHS and something new made of it.

By Schwyz

Debenhams treat the building disgracefully, they need to sort out the Tib Street and Bridgewater street interaction as atm it’s a mess.

By MMA

Let’s hope they sort out the fire exits on Tib Street which constantly used as a toliet. Big refurbishment of the exterior needed!

By Steve

Kick out Debenhams and let John Lewis move in!

By Steve

Hopefully they can make use of the upper floors too.

By MMA

This whole part of town is a dump, frankly, I hate having to walk around there. Also feels quite unsafe at night. Liverpool and Leeds are streets ahead.

By Not good enough

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