Canada Life Investments has sold the Lloyds Bank building in Manchester’s retail core to a private Asian client of Michael Elliott for £13.23m, reflecting a net initial yield of 4.14%.
The ground and upper floors of the property, which totals 19,427 sq ft, are let to Lloyds until 2023 for an annual rent of £580,000. An additional 3,661 sq ft of space suitable for retail or leisure use is available in the basement.
Peter Mallinder, investment director at Savills, said: “This prime investment opportunity attracted a huge weight of interest from both UK institutions and overseas investors. Market Street is one of the strongest retail pitches outside of London and with further rental growth forecast we expect it to go from strength to strength.
“We also anticipate continued capital growth and demand in prime regional cities such as Manchester as investors look to capitalise on the yield spread between Central London and the regions. This is reflected in the sale price achieved.”
The purchaser was represented by Dominic Rowe of Michael Elliot.