Allied London Properties has sold 3 Hardman Street in Spinningfields to European fund manager Aerium.
Allied London Properties sold the building for £183.5m based on total rental income of £11.8m a year, reflecting a net initial yield of 6.1%.
The sale allows Allied London to continue to manage the multi award-winning building at the heart of Spinningfields, Manchester's new business district.
The building was purchased by the Glenn Arrow UK Property Fund, a £600m Luxembourg based fund launched by Aerium in November 2008 to acquire office and retail assets in prime UK locations. Purchases since its launch include 40 Portman Square in London's West End and One Wood Street in the City of London.
Mike Ingall, chief executive of Allied London, said: "The successful sale of 3 Hardman Street is testament to its success as a landmark building and the continuing success of Spinningfields where we now have a total of 43 organisations operating within the estate. This building is the best commercial building outside of London. Aerium is a blue-chip investor for this prime asset and we will continue to work with Aerium on this asset to further enhance the value."
Robin Carr, UK acquisition director of Aerium, added: "In a prime location and well-let to blue-chip tenants, 3 Hardman Street fits perfectly into the Glenn Arrow UK Property Fund and into our investment strategy of buying prime-located trophy assets representing long term value and strong potential returns.
"Spinningfields is a world-class business location and the leading commercial district in Manchester. The acquisition of 3 Hardman Street, the largest office building in the city, underlines not only the fund's ambitions, but Manchester's outlook as a business destination."
Designed by Sheppard Robson, 3 Hardman Street totals 350,000 sq ft of Grade A office space and has floorplates ranging from 10,000 sq ft to 35,000 sq ft.
Aerium manages a series of closed-end property ventures focused on high-quality, income-producing office, retail, industrial and/or mixed-use sector facilities in top tier Western and Central European markets.
The firm, which made its UK investment debut in 2009 with the purchase of more than £280m of property assets in the West End and the City of London, has in excess of 650 property assets worth more than €8bn under management throughout Europe.
King Sturge advised Aerium and Jones Lang LaSalle advised Allied London.