Legal & General Investment Management has bought Riverside House, part of English Cities Fund’s New Bailey scheme in Salford, for £6.3m.
The acquisition was made on behalf of Legal & General’s UK Property Fund.
The 11,000 sq ft office building became fully let in the final quarter of 2019. Tenants include Leonard Curtis Business Solutions Groups and Muse Developments, which is part of the English Cities Funds regeneration partnership that also comprises Homes England and Legal & General.
Riverside House underwent extensive refurbishment work in 2019, including the restoration of its 19th century façade and a complete internal revamp.
The works also saw the construction of an additional floor which has doubled the internal footplate of the building.
Phil Mayall, regional director of English Cities Fund, said: “With Riverside House fully let and long-term leases in place, [the property] presented a fantastic investment opportunity within New Bailey.
“The scheme is a prime example of successful city centre repurposing, taking a once completely under-utilised site and creating a business district with its own distinct character and gravitas that world-class companies aspire to be a part of.
“Now the building has been sold, we will be focusing on the next phases of development at New Bailey in what is promising to be another exciting year ahead.”
Last November, law firm BLM confirmed its move to lease 71,000 sq ft at English Cities Fund’s Two New Bailey, a 188,500 sq ft office being delivered by contractor Bowmer + Kirkland.
Matt Jarvis, senior fund manager, UK Property Fund, at LGIM Real Assets, said: “Using our UK property market forecasts, the fund continues to invest in strong performing assets where we see prospects to drive value and Riverside House is an outstanding example of this.
“As we continue to diversify our holdings, Grade A office space remains one of our preferred sub-sectors, alongside built-to-rent, operational hotels, self-storage and student accommodation, giving us real time access to occupational markets with robust rental growth stories.”
LGIM last week exchanged contracts to buy Renaker’s 37-storey North Tower at Deansgate Square, its latest BTR acquisition for the asset manager’s UK Property Fund and the first on behalf of the Managed Fund.
JLL and Cushman & Wakefield are joint agents on New Bailey.