Derwent Group has bought a 55,000 sq ft office on the edge of Spinningfields for around the asking price of £12.5m, from Rediseven, a consortium of investors.
Cardinal House is next to St Marys Parsonage, fronting the River Irwell. It is fully let to nine tenants, including Rowley Dickinson, Berrymans Lace Mawer, S Three Partnership, and Lopian Gross Barnett.
Derwent said the office is estimated to add £1m to the company’s rent roll. The acquisition is part of the company’s strategy to re-balance its portfolio by acquiring more commercial and industrial properties across the North West.
The deal follows Derwent Group announcing its most successful year to date, with its rental income now exceeding £30m each year.
David Lyons, group chief executive, said: “Cardinal House presented a rare opportunity to acquire a fully let, reversionary office building within Manchester city centre’s prime core. The additional attraction of the site is that it has excellent potential for future redevelopment and expansion.”
JLL and WHR acted on behalf of the vendor and Derwent Estates advised Derwent Group.