Allied London’s sale of No1 Spinningfields to clients of Schroder Real Estate for more than £200m, a net initial yield of 5%, has completed.
No1 Spinningfields is the final piece of the Spinningfields masterplan, developed by Allied London in partnership with Manchester City Council. The building provides 310,000 sq ft of mixed-use accommodation with PwC the largest office occupier at 60,000 sq ft, and a rooftop restaurant let to D&D. The building was 87% pre-let prior to practical completion and is also the tallest commercial building to be constructed in Manchester in 50 years.
Schroder Real Estate has acquired the property with two strategic partners, Finnish pension manager Ilmarinen and another global institutional investor.
Michael Ingall, Allied London chief executive, said: “We have a long-established relationship with Schroders that goes back to the late nineties when we worked on several joint ventures. We are delighted to have two strong international investment funds under their management invest in what is without doubt one of the best pieces of commercial real estate in the UK.”
Nick Montgomery, head of UK investment at Schroder Real Estate said: “No1 Spinningfields is a best in class building in a high quality, mixed-use development. The investment is consistent with our strategy of acquiring assets with strong fundamentals in winning cities where we expect higher levels of growth. Schroder Real Estate is a long-term investor in Manchester and this acquisition on behalf of international strategic partners illustrates our continued commitment to the city.
“In the short term our key priority will be to work closely with Allied London and capitalise on the strong leasing market in Manchester in order to let the remainder of the building.”
Schroder Real Estate was advised on the purchase by Metis Real Estate, Norton Rose Fulbright and MHBC. Allied London was advised by Shoosmiths.