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."