The distribution centre off Oldham Road has been snapped up by a private investor connected to a low-profile Salford-based millionaire, at a record low yield for the North West.
Aviva Investors sold the Royal Mail delivery office for £45m reflecting a net initial yield of 2.75%, compared to upwards of 3% for most logistics deals in the country.
It is understood that the buyer is loosely connected to Aubrey Weis, whose Great Jackson Street Estates investment vehicle owns Plot G of Manchester’s Great Jackson Street masterplan and has proposed a £350m skyscraper scheme at the site comprising two 56-storey towers and more than 1,000 apartments.
Great Jackson Street Estates submitted a planning application for the scheme called Park Place in March. The project has been designed by architect Hodder + Partners.
Agency Cooper Rose Real Estate acted for the buyer in the Royal Mail acquisition while Savills Manchester’s investment agency team acted for Aviva. All parties declined to comment.
The fulfilment centre is located between two major Manchester development zones – the Noma mixed-use district and the Victoria North masterplan, previously known as the Northern Gateway. It is the largest warehouse of its type in the city centre.
The building, acquired by Aviva for £14.4m in 2010, is one of the largest sorting offices in the North West. Royal Mail also operates a 340,000 sq ft distribution centre in Warrington.