Norwich cuts losses with Spinningfields sale

Norwich Union Property Trust has sold the 180,000 sq ft 3 Hardman Square in Allied London's Spinningfields to closed-ended German fund CS Euroreal for £95.25m, reflecting a yield of 5.36%.

The £4.4bn redemption-hit trust, managed by Morley Fund Management, only acquired the Manchester office building 16 months ago. Norwich Union bought 3 and 4 Hardman Square, of 52,000 sq ft, from Allied London for £140m in September 2006, reflecting a 4.75% yield.

The building is let to solicitors Halliwells for 24 years at £26/sq ft. In 2012 the yield will move out to 6%.

The trust hit the headlines when it froze withdrawals by small investors following an exodus as commercial property values fell sharply.

Tudor Toone advised CS Euroreal.

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