M20 Property Group has completed the sale for £16m of 67-75 Mosley Street, 79 Mosley Street and Castlefield Chapel to the London and Hereford-based investor.
The total size of all three buildings is approximately 90,000 sq ft. The two buildings on Mosley Street will be transformed by BBRE into new work space aimed at complementing the rapidly changing offer in St Peter’s Square. Boutique law firm, Pannone Corporate Solicitors occupies the grade 2-listed Castlefield Chapel, once occupied by music producers Stock Aitken & Waterman.
M20 Property, owned by Peter Quinn, Matthew Stone and Nils Wager was established in 2008 and has been particularly active in the acquisition of challenging buildings.
Stone said: “We are pleased that the tenacity of our extremely knowledgeable team combined with our strong cash position has enabled us to strategically identify assets where we can add value and maximise our position and we exit these assets at a point that exceeds our targeted returns. We are now focused on new opportunities to add to our existing portfolio and reach our target of £100m of assets by 2018.”
Andrew Cowell, transactions and asset management, OBI Property, advised M20. He said: “We take great pride on how we look after our clients’ buildings and although we were very close to pushing the button on the refurbishment projects of the two Mosley Street buildings, this off-market approach enabled M20 to maximise returns in a short period of time and to now focus on new opportunities. OBI Property specialise in converting off-market transactions and we are delighted with the end result.”
The deal takes the total investment this year by BBRE into the Manchester city office market to £28m.
BBRE is a privately owned property company with a development and investment portfolio valued at approximately £350m. The company, which is a major landlord in the Shoreditch and Clerkenwell areas of London where many of its tenants are fast growing digital and creative firms, also recently purchased 30 Brown Street and Croxley House in Manchester.
James Whitcher, asset manager, BBRE said: “We have acquired some of the most exciting refurbishment opportunities available in Manchester and the portfolio fits perfectly with 30 Brown Street and Croxley House. We now have a critical mass of assets in the city to replicate our London model and become one of the city’s most successful providers of quality workspace.”
BBRE was advised by Rob Cannock at Aurum Real Estate. Legal advice was provided by Darren Hamer of DWF who advised M20 and BBRE were represented by Michelmores.