Neptune in talks with Commerz Real over Mann Island sale

Joint venture developers Neptune and Countryside are in advanced talks with Commerz Real, the German fund, to pre-sell the office element of Mann Island in Liverpool.

The 140,000 sq ft office, currently under construction, was pre-let to Merseytravel, the passenger transport executive and authority, earlier this year on a 30-year lease.

Interest from German institutions was first confirmed by Neptune managing director Steve Parry last autumn.

The sale price has not been disclosed but is believed to be in excess of £50m. The expected yield is around 6%, equivalent to 2005 levels.

Liverpool's investment market peaked with the sale of City Square for £49m at 4.6% to London Capital in January 2007.

Bank funding is understood to be in place for Neptune and Countryside in case the sale does not complete with Commerz Real.

Bank of Scotland Corporate funded the two residential buildings at the waterfront side of the scheme, totalling 376 flats.

DTZ and Mason Owen are acting for Neptune/Countryside. Savills advises Commerz Real.

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