Deansgate block sold for £16m
LONDON investment fund Mayfair Capital Investment Management has confirmed its £15.9m acquisition of a building in Manchester’s Deansgate.
It has acquired the 47,800 sq ft number 86, home to Mexican restaurant chain Las Iguanas and Cafe Rouge, through its flagship fund, the Property Income Trust for Charities (PITCH).
The vendor is understood to be Brooklawn Deansgate, a company controlled by Phil Hodari. The deal reflects a net initial yield of 6.2%. The property produces an annual income of £994,715.
Nearby the 33,400 sq ft 76-80 Deansgate, which is home to La Tasca, The Botanist and the lap dancing bar Baby Platinum, is on the market for £8m.
James Thornton, chief investment officer of Mayfair Capital and fund director of PITCH, said: “Manchester offers the potential to drive returns through value added activities in what we regard as the strongest regional location away from the South East.
“PITCH continues to attract new investors for the charity sector on a monthly basis. With a number of acquisitions in hand we expect the fund to exceed £300m in size fairly shortly. Importantly, our investor activity is keeping pace with new equity inflows.”
King Street Commercial advised Mayfair Capital and CBRE advised the vendor.