German fund buys in St Ann’s Square

One of LaSalle Investment Management's property funds, Munich-based Kapitalanlagegesellschaft mbH, has paid £8m for the HSBC Bank building in Manchester's retail core.

The German fund, shortened to LaSalle KAG, was launched in 2011 with the aim of buying €500m of office and retail properties held on long-term leases in prime locations of the UK, Germany and France. The vendor on this occasion was a fund of DTZ Investment Management.

The 16,496 sq ft property in St Ann's Square was refurbished in 2007. HSBC has 14 years left on its lease. The price reflects a yield of 5.75%.

LaSalle Investment Management was advised by Jones Lang LaSalle, and DTZ Investment Management by BNP Paribas.