Exchange Quay bought by US investor

AN unnamed US-based institutional investor has completed its acquisition of the 433,600 sq ft Exchange Quay office development in Salford Quays.

Last week TheBusinessDesk.com reported that contracts had exchanged between The Exchange Quay Master Trust, a syndicate of investors, and Edinburgh-based fund manager Hunter Fund Management.

It is the biggest Greater Manchester office deal of the year by size.

The sale price was not disclosed but it is understood to be between £20m-£30m, down from an asking price of £32.5m and well below an £80m valuation in 2005-06.

The new owner has pledged to invest £10m on the scheme, which consists of around six buildings ranging in size from 26,151 sq ft to 116,684 sq ft. The programme will involve internal and external improvements to the buildings and the wider environment.

A number of large occupiers, such as Barclays, have left in recent months and it is said to be more than half empty. Occupiers include Kin-Tec Electronics, Future Electronics, GAB Robins and CH Robinson.

Mark Hunter, managing director of Hunter Property Fund Management, said: “Our brief was to source a project within the UK with immediate asset management opportunities and real potential to add value. As one of the country’s most dynamic office markets, Greater Manchester was an obvious choice, as was Salford Quays, which has been greatly transformed by infrastructure and Media City into a destination in its own right.

“We identified that Exchange Quay occupies one of the most strategic locations in the region and, after our investment, it will offer some of the most flexible and attractive office accommodation in Greater Manchester. Our competitive terms, coupled with quoting rents in Salford Quays standing some 50% less than in Manchester City Centre, give us distinct advantage.”

Exchange Quay was developed between 1989 and 1993 by Charter Developments as part of an enterprise zone initiative but now requires investment. Hunter was represented by Matthews & Goodman, while Savills acted for the vendor. Roy Beckett, commercial property partner at law firm Irwin Mitchell in Manchester advised the vendor too.