Aviva finds buyer for Direct Line block

DIRECT Line’s base in Manchester city centre is said to be under offer to a UK-based institutional investor.

The 60,000 sq ft building is being sold by Aviva Investors which bought the Quay Street block for £23m from Invesco four years ago.

It is fully occupied by Direct Line which has around eight years remaining on its lease.

At JLL’s breakfast briefing on Tuesday, capital markets director Simon Berry confirmed the deal but would not disclose the identity of the buyer, saying it was a UK-based institutional investor.

According to his data the Manchester investment market was dominated by UK and European-based buyers last year with 41% and 21% shares respectively. More deals were expected from Asia and the Middle East but Mr Merry said this would happen.

“Overseas investors, from Thailand, Malaysia and China, have all looked but hardly any have invested. But if you look forward overseas institutional investment is here to stay. What’s held it back has been a lack of stock.”

He said JLL has recently fielded enquiries from investors based in Chile, Mexico, Lebanon and New Zealand.