Manchester Arena acquired in £436m deal

Manchester Arena has been acquired by real estate investment trust Secure Income REIT as part of two separate portfolios at a total cost of £436m.

The Arena, the UK’s largest indoor entertainment space, has been bought alongside 76 Travelodge hotels and the largest catered event space in the City of London at the Chiswell St Brewery.

The deal has been supported by Secure Income’s £315.5m share placing.

The Arena is managed and operated SMG Europe, the world’s biggest manager of sports and entertainment venues, and has been let for a further 27 years.

The seller was Mansford, a private European multi-strategy private equity real estate firm owned and controlled by its management, which bought the venue in 2012.

The deal offers an attractive net initial yield of 6.0% with average unexpired lease terms of over 20 years, and 86% of the income with RPI protection plus a further 13% with fixed uplifts.