Flood joint venture acquires Northern Quarter block
DAMIAN Flood has completed his first property investment in Manchester, a £2.4m Victorian block in the Northern Quarter.
Mr Flood, the nephew of Brendan Flood who owned property group Modus and was a director at Burnley FC, has teamed up with the Crewe-based Swansway Group to buy Jewel House.
The grade II-listed 32,000 sq ft block on the corner of High Street and Thomas Street has 26 apartments and two commercial units on the ground floor.
It has been acquired by Hardy Mill Properties, a joint venture between Swansway and Mr Flood’s Real Estate Investment Partnerships. The purchase was funded by Santander Corporate & Commercial and reflects an initial yield of 11.79%. It is the fifth acquisition by the joint venture, taking the value of its portfolio to £8.1m.
Mr Flood said: “Jewel House marks our first investment into the city. Whilst the acquisition process was challenging we are confident we can improve the property and improve returns for our co-investors.
“The building requires some significant investment which we will be undertaking over the initial six months of ownership. We will be working closely with our chosen professional team and the city council to secure the necessary consents.
“The private rental sector is proving to be a rapidly maturing market from an investor returns and institutional interest perspective and we are keen to capitalise on our knowledge of the sector over the coming years.”
The building, formerly owned by AAA Securities, was in the hands of Law of Property Act receivers. Sanderson Weatherall represented the receiver and Tushingham Moore acted for Hardy Mill.
