Office assets come to market

A trio of office buildings in Manchester and Liverpool has come to market as cash-hungry investors begin the annual rush to complete deals before the summer break.

Peter House on Oxford Street, Manchester, is for sale by Hermes and Aviva at £15m, a net initial yield of 7.5%. The building is leased to serviced office operator Regus.

No.1 St Paul's Square, home to Hill Dickinson's Liverpool office, is for sale by Edinburgh-based Strategic Investment Management. The bulk of the 130,000 sq ft building was pre-let by English Cities Fund to the law firm in 2005 and sold to SI Management for £46.5m in April 2006. Cushman & Wakefield in Glasgow is advising on the sale, at a guide price of £33.6m, net initial yield 7%.

Downing Developments is selling the 390,000 sq ft Capital, home to insurer Royal & SunAlliance, which occupies 134,000 sq ft and UK Border Agency, in 220,000 sq ft on a lease until 2021.

The guide price is £60.5m, an initial yield of 8%. Downing paid £50m for the landmark building, dubbed the 'sandcastle' locally, at the end of 2005.

Downing spent around £10m refurbishing the building since. The Capital has rental income of £5.1m a year. There is 20,000 sq ft of retail and ancillary space.

DTZ is advising Downing.

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It’s a pity about the timing. The investment agents will have their Summer Holidays spoilt by having some work to do. Mind you, they now have fax machines in Abersoch, I hear

By Mary Hinge

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