OSIM Purchases £12.3m Cheadle Royal Offices, Manchester

Orchard Street Investment Management LLP, a leading UK specialist commercial property investment manager, has purchased two high quality office buildings on Cheadle Royal Business Park, one of the North West’s leading business parks, on behalf of a UK pension fund client. Orchard Street paid £12.3m for the investment, from Scottish Widows Investment Partnership (SWIP) on behalf of the SWIP Property Trust which represents an initial yield of 7.7% and an equivalent yield of 7.3% .The two fully let buildings on Cheadle Royal Business Park provide a total of 57,100 ft² and are occupied by Umbro plc and Agilent Technologies. They were constructed in 1999. The buildings provide high specification offices, with an above average number of car parking spaces (1:185 ft²), in a pleasant park setting in an affluent area of Manchester. Cheadle Royal Business Park totals 67 acres with approximately 600,000 ft² already developed and is located on the A34 just 2 miles from Manchester Airport. The park benefits from leisure facilities, a hotel and is adjacent to a 73,400 ft² Sainsbury’s supermarket and 200,000 ft² John Lewis Department Store.

Gary Felce, Chief Investment Officer at Orchard Street, said:

“We are very excited to be able to secure this investment in such a high quality business park at a price which represents excellent value for our client. We remain positive about the commercial property market following a significant rerating over recent months, and expect to follow this deal with a number of others in the near future.”