Seneca Property sells Cheadle Royal asset to occupier
Pharma business Seda, which has just secured a £15m investment from the Business Growth Fund, has bought its 40,000 sq ft base in a deal reflecting a net initial yield of 8.75%.
For Seneca, the deal for the Lakeside building reflects the latest stage of a disposal programme
Over the past 12 months, Seneca has offloaded six assets across Hull, Burnley, Bolton and Preston, as the firm continues to execute value-add strategies and actively manage and recycle capital across its portfolio.
The business also acquired the Queen’s Court office block in Manchester city centre last month.
The Lakehouse extends to approximately 40,000 sq ft and, unsurprisingly, occupies a prominent lakeside position within the established 67-acre Cheadle Royal Business Park.
Seneca originally acquired the building in 2016, when it was fully let to Balfour Beatty.
Following the contractor’s departure, the firm repositioned the asset, completing two full-building lettings with a combined vacancy period of less than 12 months.
Seda Pharmaceutical Development Services signed up in May 2023. Since then, the business has invested £8m to transform the building into a manufacturing facility capable of supplying medicinal products to biotech companies globally.
This redevelopment has repositioned the former office building into a modern life sciences manufacturing hub, supporting Seda’s continued growth while creating a highly specialised asset within the South Manchester market.
Seda provides end-to-end pharma development services, supporting companies from early stage drug development through clinical trials to registration. Founded in 2015, it has to date supported 185 customers on more than 1,000 projects.
Chris Bullough, managing director of Seneca Property, said: “The sale highlights the strength of our value-add approach. By securing Seda and supporting the repositioning of the building into a specialist life sciences facility, we have delivered a positive outcome for both parties.”
With three acquisitions already completed this year, Seneca said it is making good progress sourcing new investments, with a further £25mn to deploy over the coming months.
CBRE advised Seneca Property on the sale of The Lakehouse, with legal advice provided by TLT.
Seneca Property was founded in 2017, and functions as the property arm of Manchester-based investment group Seneca Partners.
