Hines makes £85m bid for Royal Exchange

Contracts are due to be exchanged in the coming weeks on the sale of Manchester’s Royal Exchange to real estate investment firm Hines.

The 280,000 sq ft grade-two listed island block has been placed under offer by Hines, acting on behalf of German public sector pension group Bayerische Versorgungskammer.

Royal Exchange is owned by Trinistar, a joint venture between Starwood Capital and Trinity Investment Management, which bought the Royal Exchange in 2014 for £45m from longstanding owner M&G Real Estate.

Trinistar has since conducted a £15m phased programme of improvements across the building. A refurbishment of the 19,000 sq ft retail façade, a refit of the Northern offices, and external cleaning of the façade recently completed.

Royal Exchange is made up of a 700-seat national theatre, 120,000 sq ft of office space and 100,000 sq ft of retail accommodation. Occupiers include Molton Brown, Starbucks, Accessorize, Scribbler and The Body Shop.

Hines is represented by Bilfinger GVA; Gary Scorah’s Commercial Properties is acting for Trinistar.

All parties declined to comment.

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So GVA sold the building less than two years ago for £45m and then buy it for £85m. M&G must be delighted having owned the building for 50+ years.

By Morse