LaSalle Investment Management has acquired the 68,500 sq ft block on the corner of Manchester’s Deansgate and Blackfriars Street from David Samuel Properties for £16.2m, at a net initial yield of 6.6%.
The six-storey Maybrook House at 48-58 Deansgate is currently let to nine tenants with a weighted average unexpired lease term of 5.3 years across three retail units, a basement bar, two floors of restaurants and three floors of offices.
The only vacant space at Maybrook House is part of the fourth floor, which extends to 6,813 sq ft.
Tenants include multi-cuisine restaurant and bar Red Hot World Buffet, which occupies 23,353 sq ft on ground, first and second floor, IBM which has 11,690 sq ft of office space, Lopian Wagner Solicitors which occupies 9,228 sq ft on the fifth floor of the building. Trailfinders occupies a 5,015 sq ft on the ground floor and part of the basement level and a 4,600 sq ft Tesco.
Rents in the building range from £14 to £16.50/sq ft on the leisure and offices and £85 to £95/sq ft on the retail units.
Katie Hynard, asset manager of LaSalle Investment Management, said: “Maybrook House is an attractive value-add opportunity with significant asset management potential. While it is currently an income producing asset, it could be redeveloped in the medium term, given its strategic location, to deliver more office space or alternative uses.”
LaSalle was advised by Deloitte Real Estate. David Samuel Properties was advised by GVA.