Spinningfields apartment portfolio changes hands

Irish receiver Kavanaghfennell has sold 10 one-bedroom apartments in Leftbank in Manchester to letting agent and investor Wren Properties for around £1.3m.

DTZ acted for Kavanaghfennell, appointed after the original irish investors went into administration. The apartments are fully tenanted and produce an annual rental of £94,320, with the sale price reflecting an initial yield of approximately 7%.

Michal Skotny, associate director at DTZ, said: "The sale price shows the current strong level of investor appetite for well located quality apartment portfolios from both regional and London based investors. This is very encouraging and potentially indicates that some investors are broadening their requirements to areas outside London, with a growing consensus that some regional residential investments offer robust income but potentially more attractive returns than London based stock.

"A total of nine competitive bids were submitted, with the level of offers testament to the attractive lot size and the income and return fundamentals supported by strong rental demand. This was coupled with the ability to achieve a break up of the portfolio within a reasonable timescale. The yield of 7% is an excellent result, particularly given that service charge levels at the development have increased by approximately 30% over the past five years."

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