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.

Your Comments

Read our comments policy here