Umbro office building in south Manchester sold for £8.7m

Phoenix Life has sold Lakeside 5000 at Cheadle Royal Business Park in south Manchester to Skandia Property Fund for £8.7m.

The deal reflects a net initial yield of 7.5%.

The 37,296 sq ft office building is occupied by Umbro as its global headquarters and has been let to its parent company Nike since 1 June this year for a period of ten years.

The passing rent totals £689,976 per annum with an annual increase reflecting 2.5% per annum. Umbro has the right to extend the lease.

Craig Barton, investment director at DTZ, which acted on behalf of Phoenix Life, said: "This disposal generated tremendous investor interest from both UK and overseas investors. A combination of a quality building situated on one of the best business parks in the north, let to Umbro/Nike with guaranteed rental growth captured the imagination and proves investor interest has returned for good quality property."

Developed by Muse Developments, Cheadle Royal Business Park is a 70 acre site containing 500,000 sq ft of office space with associated leisure, restaurant and hotel facilities. Office occupiers alongside Umbro include Capita, Regus, Byrom and Trinity-Chiesi Pharmaceuticals.

Strutt & Parker advised Skandia Property Fund.