South Manchester office block hits market for £5.3m

Owner Regional REIT, through asset manager ESR, is looking to sell The Royals in Wythenhawe for £2.9m less than it paid Squarestone Growth for the property in 2021, according to HM Land Registry data.

The 53,200 sq ft office block off Altrincham Road offers five floors of workspace accommodation. Currently with five tenants, the property brings in £436,700 in passing rent, equating to £15.22/sq ft. The tenants are Advanced Travel Partners, Match Me Finance, Threesixty Services, Texas Instruments, and Diagnostic Healthcare occupy.

Approximately 24,500 sq ft of the five-storey building is vacant – with units available on the first, third, and fourth floors.

If sold for the £5.3m guide price, that would represent a net initial yield of 7.73% and a capital value of £100/sq ft.

The building is primed for a refurbishment, according to the brochure from agents Newmark and Knight Frank. They note that similarly sized, renovated properties in South Manchester are quoting £34/sq ft – namely Scotscroft at Towers Business Park in Didsbury.

In addition to the office building itself, the freehold of the nearly two-acre site includes a 277-space car park.