KPMG’s former office in John Dalton Street, Manchester city centre, has been sold to Tesco Pension Fund for £17.2m, from an asking price of £12.4m.
The 70,750 sq ft seven-storey island block is made up of 66,000 sq ft of offices over the upper six floors, which have been vacant since KPMG completed its move to Argent’s One St Peter’s Square earlier this year.
The Crown Estate was the vendor.
The building has three ground floor retail units let to Neal’s Yard, Long Tall Sally and Flanagan’s Barber Shop, with a £109,000 annual income. There are 65 car parking spaces in the basement.
While St James’s House was marketed as a refurbishment or a redevelopment opportunity, sources said it was likely that Tesco would go for the refurbishment option in order to re-let the offices.
The Crown Estate was advised by Griffiths Eccles.
All parties declined or were unavailable to comment.