Funds spend £78m on Spinningfields offices

Michael Hunt

Legal & General's UK Property Unit Trust has sold 2 Hardman Street at Spinningfields in Manchester to German fund manager Hansainvest for £57m.

Legal & General bought the 157,364 sq ft sq ft building from developer Allied London for £86m in 2006.

The sale represents a yield of 6.75%. Hansainvest is the fund management arm of German insurance group Signal Iduna.

Meanwhile, in a separate purchase, BP Pension Fund has bought 4 Hardman Street from Aviva Investors Property Fund for £21m, equivalent to a 6.95% yield.

BP Pension Fund join Grant Thornton and HSBC at the 53,000 sq ft office block.

Aviva bought both 3 and 4 Hardman Street for £140m from Allied London in September 2006.

Both BP Pension Fund and Hansainvest firms paid cash, except Hansainvest did use a small amount of debt to secure the deals.

CB Richard Ellis advised Hansainvest, while King Sturge represented Legal & General on the sale of 2 Hardman Street.

King Sturge acted on behalf of Aviva and Christopher Dee represented BP Pension Fund.

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