Orchard Street Investment Management LLP, the specialist commercial property investment manager, has purchased Bauhaus, Quay Street, Manchester from Blackrock for £16.25 million. The acquisition was made on behalf of St James’s Place property funds and reflects a net initial yield of 7.6%.
Bauhaus is a 50,863 sq ft prime Grade A multi-let office, situated opposite Spinningfields business district and adjacent to the proposed redevelopment of the ITV site in Manchester. The fully-let property, occupied by Irwin Mitchell, Gazprom and Evolution Banking, has an annual passing rent of £1.31 million, reflecting an average rent of £23 per sq ft. The average weighted lease length is five years to lease expiry and four years to the earliest tenant break option.
Commenting on the acquisition, John Humberstone, Partner at Orchard Street, said:
“Bauhaus is a striking, high quality, well let asset in a well established City Centre location. Being immediately adjacent to Spinningfields with an excellent car parking ratio it has solid rental growth prospects. There are a number of nearby high profile developments in the pipeline which will only go to improve the location further. We consider this asset to be a great addition to the St. James’s Place portfolio. ”
DTZ advised Orchard Street and Blackrock was advised by JLL.
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Orchard Street Investment Management
Established in 2004, Orchard Street Investment Management LLP is a leading specialist commercial property investment manager, focused on the UK market. It acts on behalf of institutional clients world-wide to advise on investing in and the active management of property assets, including industrial, retail warehouses, offices and shopping centres. Orchard Street currently has assets under management exceeding £4 billion.