Speakers House on market for £8m

Aegon is looking to sell 39 Deansgate in Manchester, a site that has planning permission for a 17-storey office block designed by Sheppard Robson.

CBRE is marketing the property for Aegon and accepting offers of more than £8m. At that price, the deal would reflect a net initial yield of 4.88%.

Future buyers will have the opportunity to build the permitted plan or to continue with the present, eight-storey building.

Sheppard Robson designed the Speakers House proposal. Credit: via planning documents

Manchester City Council granted Aegon planning permission for the site in January. The approved plan would see 39 Deansgate demolished and a more than 143,600 sq ft structure built in its stead. With floor plates of around 9,000 sq ft, the building would retain retail elements on its ground floor.

CBRE projects that the site could generate office rents of more than £45/sq ft within three years of completion.

Going forward with development opportunity would also see the renewal of the site’s 250-year leasehold interest from Manchester City Council.

If a buyer opted to continue with the current 41,000 sq ft building, the leasehold title would expire in April 2059. The building currently generates a gross passing rent of more than £416,600 a year.

With an £8m price tag, the building is being sold for £3m less than it was purchased for – Aegon acquired the site from Target Real Estate for £11m in March 2018.

Across the road from 39 Deansgate, another property is on the market. The 68,000 sq ft Maybrook House is also for sale, with CBRE accepting offers of more than £16m for the site.