One New York Street

Royal London buys One New York Street

Invesco Real Estate has sold Manchester’s One New York Street to the Royal London Pension Property Fund for £55m.

One New York Street comprises 113,300 sq ft of office space across 13 floors, in addition to two floors of basement car parking.

The building, completed in 2009, was designed for developer Bruntwood by Denton Corker Marshall, the Australian firm’s second Manchester project following the Civil Justice Centre. It currently houses eleven occupiers include Marks & Clerk, AECOM and Turley, with The Alchemist occupying a ground floor bar unit. Bruntwood sold the building to Invesco in 2012 for £42m.

JLL acted for Invesco on the deal with the buyer being represented by Ryden.

James Porteous, capital markets director at JLL in Manchester, said: “The city centre office investment market has been particularly active this year with over £600m already transacted and JLL have been fortunate to be involved in many of these transactions.

“It’s extremely likely that total volumes for 2017 look set to exceed last year’s total of £642m but will be some way off the stellar year of 2014 which saw over £1bn sold. There has been a definite trend this year towards off market deals and the city attracting equity from overseas investors.”

Alasdair Munn, partner investment and finance at Ryden, said: “The property will be a positive addition to Royal London`s growing portfolio of modern, multi let offices located in the UK`s premier cities where value can be added not only by selective asset selection but also through active asset management.”

Invesco retains interests in the region. It is funding the £35m Outwood Wharf scheme in Salford, where developer Endeavour and Lagan Construction are delivering 263 build-to-rent apartments and townhouses in a scheme which started on site in July.

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I heard from one agent they “got their pants pulled down ” on the deal…….good office though and prime location to capitalise on both rental growth and cap value. Wise purchase in my view.

By S. Jonese