Island Site

Island Site for sale at £8m

A consortium led by Bluemantle has decided to sell rather than redevelop the so-called Island Site between South King Street and John Dalton Street in Manchester city centre.

The mixed-use block is owned by Island Site LLP, a partnership between Dolphin Land, Reflect Property Developments and Cheshire-based Bluemantle Investments.

The premises total 55,000 sq ft split between three adjoining buildings: Old Colony House, 5 Ridgefield and Grange House.

Jones Lang LaSalle has been instructed to sell the building at a guide price of £8.265m, at a net initial yield of 7.5%.

Bluemantle had considered redeveloping the site and arranged lease terms to deliberately allow for vacant possession to be obtained in June 2015.

The total passing rent at the site is £655,231 a year, of which 66% is secured against the ground floor retail and restaurant leases. The 34,695 sq ft of upper office space is valued at £70/sq ft reflecting the short leases.

The ground floor occupiers include Living Ventures, trading as Grill on the Alley, Pizza Express, Essensuals and Salad Bowl, trading as San Rocco.

Office occupiers in the upper floors include property law firm Goodman Harvey and Five Plus Architects.

All parties declined to comment.

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