Owner makes £10m on Peter House in three years

PETER House, the landmark building on the corner of Manchester’s Oxford and Mosley Streets, has been sold for £24.75m.

The sale means a tidy return of £10m for Mayer Real Estate, which acquired the 94,650 sq ft asset in 2011 for £14.7m.

The new owner of the building, which is let to services office provider Regus, is Rockspring Property Investment Managers.

Having advised Mayer on its putchase, Manchester-based WHR Property Consultants also acted on the sale.

Regus occupies the 10 upper floors of the building, totalling 82,254 sq ft.  The ground floor is let to a number of leisure operators including Don Giovanni, Giorgio One, Papa John’s, Terence Paul Hairdressing and Simply News.

Ehud Michman of Mayer Real Estate, said: “When we originally purchased Peter House, we recognised the future potential of the location, which was to benefit from significant investment including the refurbishment of the Town Hall, the improved public realm works and proposed new office developments. This potential is now being realised as the works to St Peter’s Square are completing and it is firmly establishing itself as the leading new business destination for the city.”

Dan Crossley of WHR added: “Although MRE had no plans to dispose of Peter House, which it had successfully asset managed over the last three years, the attractive off-market approach by Rockspring was well timed and will enable MRE to focus on new opportunities.”

King Street Commercial acted on behalf of Rockspring.