Portsmouth City Council buys Manchester’s Queens House

CBRE Global Investors, acting on behalf of retained clients, has secured the simultaneous exchange and completion of the sale of Queens House, Queen Street, a refurbished office investment property in Manchester city centre, to Portsmouth City Council.

The deal, for an undisclosed sum, achieved a sale price equating to a net initial yield of 4.75%.

Queens House comprises 22,194 sq ft of accommodation arranged over six upper office floors with an A1 retail unit on the ground floor.

Five of the six office floors are fully-let to a range of professional occupiers, with one vacant floor still available.

Queens House has recently undergone a full refurbishment programme to provide tenants with Grade A office accommodation.

The building offers minimalist, contemporary office space, including showers on the ground floor with bicycle store and lockers at basement level.

The property is ideally situated to benefit from ongoing development in Lincoln Square. It is also positioned next to Spinningfields, the central business district and St Peter’s Square and has excellent transport connections.

John Clark, director, CBRE Global Investors, said: “The property was purchased as an opportunity to add value through refurbishing and repositioning the asset.

“The refurbishment provided unique city centre space with exposed services that has appealed to the growing number of tech and media companies located in Manchester.

“This sale brings the business plan to a successful close with the holding having produced strong returns for our client.”

Will Kennon, senior director, CBRE’s investment properties team in Manchester, added: “This prime office investment attracted more than 10 credible offers to purchase the property ahead of the quoting level.

“We ultimately chose Portsmouth Council who performed in exemplary fashion reaching exchange and simultaneous completion within the 15 days time period agreed at the outset of the transaction.

“In light of the development and improvement of Lincoln Square, including 125 Deansgate, Brazennose House and Heron House, Queens House has excellent potential for Portsmouth City Council to benefit from increased rental and occupier demand in the medium term.”

CBRE Manchester acted on behalf of CBRE GI. Scott Gemmell, director, LSH’s Capital Markets team in Manchester, acted on behalf of Portsmouth City Council.