Legal & General Investment Management Real Assets has sold Virgin Media House, a 110,000 sq ft headquarters office building on Concord Business Park, South Manchester for £19.7m to Global Mutual at a net initial yield of 8.29%.
The building has was held in LGIM Real Assets’ Linked Life Property Fund. The building is fully let to Virgin Media, with seven years remaining on the lease. The office was developed in 1990 and sits on 7.83 acres with 500 parking spaces.
Craig Westmacott, senior fund manager at LGIM Real Assets, said: “The fund successfully completed both a re-gear with the occupational tenant and the freeholder Manchester City Council the subsequent disposal is a completion of the business plan for the asset delivering strong returns to our investors.”
Cushman & Wakefield acted for LGIM Real Assets on this sale. Craig Barton, investment director of C&W, said: “The sale represents the culmination of a long C&W and L&G relationship at Virgin Media House, and despite Brexit concerns, the sale attracted strong interest from UK and overseas investors, which allowed us to crystallise an excellent result for our client, but with further potential for Global Mutual to capitalise from continued expansion at the adjacent airport.”