Institution pays £7m for city centre block

A BLOCK of shops in Manchester city centre has changed hands in a £7.1m deal.

Representing the vendor CBRE has sold Lancaster Buildings, 65-77 Deansgate, to Aviva Investors, representing an net initial yield of 6.82%.
 
Lancaster Buildings is a traditional stone property within the St Ann’s Square conservation area. The six self-contained ground floor retail units totalling 12,199 sq ft are occupied by a mix of high quality operators including Barburrito, Caffé Nero, Subway, Cancer Research, Regis and Castle Galleries.

The units generate a total annual income of £510,000. The office floors above the retail have been previously sold by way of long leases

Peter Rowe of KLW Property advised AVIVA Investors on the purchase.

Colin Thomasson, executive director of Capital Markets at CBRE’s Manchester office, said: “The property is in an excellent location close to a number of top retail destinations and high end leisure operators in the heart of Manchester city centre. The deal is indicative of the investor appetite for retail investment opportunities within central Manchester.”

Simon Green of Aviva Investors added: “This was an attractive opportunity to acquire a well let retail parade in a dominant regional centre for a yield approaching 7%. Manchester continues to receive significant inward investment and occupier interest and the units provide well configured retail accommodation in a strong pitch.”