‘Dunedin set for double property swoop’

DUNEDIN Property has secured US backing to buy two Manchester office buildings from CBRE Global Investors for around £23m – half the price that the fund manager paid for them in 2005.

According to PropertyWeek.com, Dunedin, with backing from US private equity giant Angelo Gordon, has placed the 250,000 sq ft Churchgate House and Lee House on Oxford Road under offer at a yield of around 11%.

The inter-connected buildings would represent the first major buy for asset and investment manager Dunedin since its industrious portfolio was bought by Nick Leslau’s Max Property in 2009.

The two buildings are let to 12 tenants, including Greater Mancester Chamber its sister company Manchester Solutions, Ricoh UK, Capita and the Legal Services Commission, and provide a rent of almost £3m a year.

Dunedin, advised by GVA, is expected to embark on an intensive asset management programme for the Grade-II properties, which were put up for sale in May through Jones Lang LaSalle.

Investment Property Databank figures published on Wednesday indicated that values in Manchester had dipped by 40% since their peak – a bigger fall than Birmingham, Edinburgh and Liverpool.

All parties declined to comment.