In the biggest single office acquisition to take place in the region’s history, Schroders Investment Management has exchanged contracts to buy Allied London’s recently completed No1 Spinningfields for around £200m, equating to a 5% yield, on behalf of Japanese investors.
The 300,000 sq ft tower is the final major part of Manchester’s key commercial district, and reached practical completion in August, Bam Construction handing the building over to developer Allied London.
Designed by SimpsonHaugh, No1 was 90% let prior to completion, including to PwC, which has increased its tenancy in the building from 50,000 sq ft to 93,000 sq ft.
Other occupiers include law firm Squire Patton Boggs and hip coworking operator WeWork, which signed for 60,000 sq ft in June. An M&S Foodhall opened on the ground floor last week, high-end restaurant operator D&D London is fitting out its restaurant on the 19th floor.
The deal by Schroders, advised by Metis Real Estate, looks to be the largest commercial property deal recorded in the North West. The top spot was previously held by Deka Immobilien’s purchase of One St Peter’s Square from Argent and GMPVF for £164m last year. In 2014, M&G Real Estate paid £320m for two separate Spinningfields offices, One Spinningfields Square and One Hardman Square. In the same year, Schroders acquired City Tower from Bruntwood for £132m.
On the edge of Salford, M&G Real Estate acquired 101 Embankment for £103m in July, from Ask, Carillion and Tristan Capital Partners.
The Liverpool market has also shown a healthy investor appetite for offices this year, with L&G taking the landmark India Buildings, recently let to HMRC, for £125m from Shelborn Asset Management.
OBI Property is letting agent on No1Spinningfields.