Town Centre Securities has acquired the 33,000 sq ft Ducie House in Manchester, along with its 63-space car park, for £9m from its long-term owner Urban Splash.
Formerly a petticoat factory, Ducie House was one of the first buildings developed by Splash in the 1990s, with Ian Simpson being brought in on its redesign, and it now comprises 64 office and studio spaces of up to 3,900 sq ft.
Manchester businesses that have occupied space in the units include ANS, UKFast, Ask Developments and Ear to the Ground along with the business operations of 808 State and Simply Red.
There are approximately 50 tenants based in the building at present, mostly let on an all-inclusive flexible lease basis producing an annual income of £675,000.
TCS, based in Leeds and known as a long-term property investor and car park operator, has been heavily involved in Piccadilly Basin for more than a decade, masterplanning development of the area between Piccadilly station and the Northern Quarter.
The developer has brought forward projects including the Urban Exchange retail scheme fronting Great Ancoats Street and the redevelopment of Carver’s Warehouse on Dale Street, while the Ducie Street side of the area saw BDP’s Manchester headquarters built out.
The deal continues a relationship between the businesses that has seen Urban Splash start work on a residential scheme named Avro at the 1825-built Brownsfield Mill, also in Piccadilly Basin, on behalf of TCS.
Edward Ziff, chairman and chief executive of TCS, said: “Ducie House, an exciting development in a prominent location, forms a key part of our investment and regeneration of Piccadilly Basin and the surrounding area.
“We believe the building will be a valuable addition to our existing assets at Piccadilly Basin and is directly opposite our next planned residential development, Eider House. We certainly see room for potential refurbishment, as well as the development of the car park.”