Wilmslow Park, a 53,000 sq ft mixed-use building in Manchester's Oxford Road has been sold for £17.3m.
Legal & General Property's managed fund has bought the building from HSBC Pension Fund at a net initial yield of 6.75%.
The asset has 40,615 sq ft of fully let retail and leisure accommodation with 12,760 sq ft of offices let to the local NHS Trust, which accounts for 50% of the total income. Retail tenants include Tesco, Superdrug, J D Wetherspoon, Lidl, Subway, Caffé Nero, Barracuda Group and Blockbuster Entertainment. The building was developed by Opal and contains student accomodation retained by Opal and not included in the sale.
Charlie Walker, senior fund manager of L&G, said: "This mixed-use acquisition provides us with both an excellent location and a high quality tenant base, which is ideally suited to its local catchment area.
"The asset is an ideal purchase for the Managed Fund and provides an attractive level of income return and the opportunity to enhance value through active management."
LGP was represented by Savills; the vendor was advised by Whitaker Horton.