In a deal described as “significantly ahead of the quoting price,” Canada Life has acquired the 30,000 sq ft Barnett House in Manchester from Eric Wright Group for £7.82m.
The 1980s office on Fountain Street, which was extensively refurbished in the 1990s, is let to Regus until October 2021 and generates a rent of £514,900 per year.
The purchase was made by Canada Life following the sale of 54 Princess Street earlier this year; the investor first purchased the 22,000 sq ft building in 2015. Wildbrook CRE acted for the purchaser, while CBRE acted for the vendor.
Neil Higson, investment director at Wildbrook CRE, said: “Barnett House is a very exciting opportunity, in a prime location in the traditional heart of the central business district in Manchester. Given the activities of the tenant, and the recent introduction of their Spaces brand in the City Centre at Peter House, it makes Barnett House an intriguing prospect. The asset is also reversionary with rental growth possible, and provides a number of asset management angles in the medium to long term.”
Luke Wilson, associate director at CBRE, added: “We were delighted to complete the sale of Barnett House on behalf of Eric Wright Group at a level significantly ahead of the quoting price. The asset received an excellent level of investor interest and we wish Canada Life all the best with their future plans.’’