Hermes buys in central Manchester

Hermes Property Unit Trust has acquired the 47,000 sq ft Citygate Court in Mosley Street which is fully occupied by Barclays Bank.

Barclays has occupied the six-storey building since 1989. The bank has taken a reversionary lease, due to start at a later date, on the ground floor with an option to renew on the upper floors.

The building was marketed at a price of £8.5m, representing a net initial yield of 8.5% on behalf of Aegon UK by Jones Lang LaSalle.

Gary Scorah, investment partner at OBI Property LLP, said: "Hermes had considered a number of properties available in the City but believed that Citygate Court was better positioned in the market and would show future resilience. The building offered them a property within Manchester's traditional core showing a healthy return from the current tenant but with future opportunity to asset manage should the opportunity present itself."

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