NFU Mutual agrees £57m Chancery Place deal

NFU Mutual has agreed to pay £57m for the 106,000 sq ft Chancery Place office building in Manchester.

The deal represents a net initial yield of 5.05%.

Tenants include Kyocera, Clyde & Co, i2, HSB Engineering, Clearwater Finance, Travelers Insurance and QBE Management Services.

The 15-storey glass tower in Brown Street was developed in 2008 and has been sold by Alanis Capital.

CBRE and Wragge Lawrence Graham represented NFU Mutual with JLL and Jones Day acting for Alanis. 

Will Kennon, director of capital markets at CBRE in Manchester, said: “Chancery Place represents the first evidence of a ‘super prime’ asset being traded in the current investment cycle. The building is a stunning trophy asset providing best in class office accommodation within Manchester’s historic core business district providing an exemplary tenancy line up.

“There is opportunity to draw upon the rental growth being evidenced across the Manchester occupational market and we are delighted to have secured the acquisition on behalf of NFU Mutual.”

James Porteous, director of capital markets at JLL, said: “Our client had created an outstanding building which has attracted a lot of interest from both UK and International investors. We are delighted with the outcome of this sale which demonstrates the demand for exposure to the regional office markets and Manchester in particular.”