Helical has paid £12.9m at a net initial yield of 9.25% to buy the 47,500 sq ft office building on John Dalton Street, Manchester city centre, from Ardstone Capital.
Trinity Court becomes the fourth building in Helical’s Manchester portfolio, and will be refurbished and extended when Squire Patton Boggs, occupier of the entire office space, vacates next year to move to No 1 Spinningfields.
The offices at Trinity Court were redeveloped in 1992 behind a 19th century façade.
The building also includes two small retail units, totalling 4,000 sq ft, let until 2018. Helical intends to undertake minor refurbishment work of these which will deliver attractive annual rental uplift on completion.
Will Parry, asset management executive at Helical, said: “This off-market transaction further complements our existing portfolio in Manchester, where occupier demand for well-located, good-quality assets in the centre remains strong. The supply of Grade A space is currently near an all-time low and there is a limited development pipeline, so Trinity Court represents an exciting proposition for us.
“Capitalising on these positive market dynamics, the asset is in an area that is undergoing significant transformation and offers attractive reversionary potential following the capital expenditure programme, as rents in the area start to reflect the quality of local occupiers.”
Helical was advised by Commercial Properties.