Orchard Street acquires Bauhaus building
ORCHARD Street Investment Management has acquired the Bauhaus office block in Manchester city centre for £16.25m.
The 50,800 sq ft building on Quay Street, which is home to law firm Irwin Mitchell and Gazprom, was developed by Ask and Crosby Homes as the second phase of Rossetti Place in 2005-06.
It has an annual passing rent of £1.31m, reflecting an average rent of £23/sq ft. The sale price represented a net initial yield of 7.6%.
John Humberstone, partner at Orchard Street, said: “Bauhaus is a striking, high quality, well let asset in a well established city centre location. Being immediately adjacent to Spinningfields with an excellent car parking ratio it has solid rental growth prospects.
“There are a number of nearby high profile developments in the pipeline which will only go to improve the location further. We consider this asset to be a great addition to the St James’s Place portfolio.”
Barton Arcade-owner Morgan Leahy acquired the building for £16m in 2005. At some point it was bought by London-based asset manager BlackRock which put it on the market.