Property firm hands over £16.5m for Northern Quarter warehouse
A former warehouse in Manchester’s Northern Quarter has changed hands in a deal worth £16.5m.
Property investment firm Helical has announced the off market freehold acquisition of Fourways House, Hilton Street.
The firm bought the building from a private individual and the purchase price reflects a net initial yield of 5.3%.
The building is close to 35 Dale Street, another Helical property and next to the Piccadilly Basin regeneration zone.
The brick built Grade II listed is a former packing warehouse and provides 59,000 sq ft of space over basement, ground and five upper floors.
The building is currently let to 26 tenants largely from the tech, creative and fashion industries.
The building has been refurbished to provide exposed brickwork, steel columns, timber floors and exposed ceilings.
A statement on the Stock Exchange said: “As with a number of Helical’s other successful office assets, such as The Loom and The Shepherds Building in London, Helical will undertake a rolling refurbishment programme as space becomes vacant as well as updating the common areas to help in repositioning the building.
“The purchase of the asset is consistent with Helical’s strategy to be an office-led investment and development company focussed purely on London and Manchester.
“Following this transaction Helical will own five Manchester office assets providing circa 450,000 sq ft.”
Will Parry, asset management executive at Helical, added: “This transaction is further evidence of our belief that Manchester offers attractive opportunities for our skill set outside of London and we are excited about Fourways House.
“It is a typical Helical building, meaning that it will provide plenty of opportunities to improve it visually, and create office space targeted at the tech and creative industries.
“On an operational basis it will also lend itself to providing flexible leases, thus enabling us to work alongside our tenants to provide a long term home for their growing businesses.”
Helical was advised by CBRE.