M&G swoops again in £90m Spinningfields deal

M&G Real Estate has snapped up another key Spinningfields asset, paying more than £90m.

It has bought 3 Hardman Square from Credit Suisse Asset Management, the deal coming on the back of a year in which M&G bought and sold about £4bn of property in the UK, Europe and Asia, bringing total transactions for the last two years to £7.3bn.

M&G chief executive Alex Jeffrey said the first purchase of 2015 in Manchester reflected an ongoing strategy to add more quality stock to its portfolio.

“Over the past two years, M&G Real Estate has been one of the most active participants in the property market as our clients have allocated more capital to the sector,” he said.

“Capital inflows have been strong in 2014, allowing us to acquire more than £3.2bn of assets with an average deal size of £50m.

“We move into 2015 in a strong position with the benefit of investor and third party interest.”

The acquisition of the former home of law firm Halliwells for £91.7m was made on behalf of M&G Property Portfolio, managed by Fiona Rowley and Justin Upton.

Developed in 2007 and designed by Foster & Partners, the asset comprises 178,508 sq ft of Grade ‘A’ office space west of Deansgate. Its tenants include law firm TLT Solicitors, World Pay and insurer Towergate.

It follows the purchase of 1 Spinningfields Square – a 500,000 sq ft prime office scheme – which M&G Real Estate acquired in June 2014 in one of the largest ever regional office deals in the UK.

Upton said: “Business activity in Manchester is flourishing and we anticipate continued rental growth due to shortage of supply, a lack of new speculative development and demand remaining strong for prime Grade ‘A’ buildings.