City centre office block offloaded for £29m

Manchester city centre office block 201 Deansgate has been sold to Essex County Council for £29m.

Redefine International, the listed property owner, bought the building as part of the AUK Portfolio almost a year ago.

The sale price of the 83,688 sq ft property represents a net yield of 3.6% and a 14.3% premium on the last reported book value.

It delivers a net annual net rental income of £1.1m.

Redefine International chief executive Mike Watters said: “The disposal of 201 Deansgate represents yet another significant value enhancing opportunity that the AUK Portfolio offers the company.

“After less than a year of ownership, we have delivered an excellent 14.3% premium to book value on behalf of our investors, whilst also de-risking the portfolio from a number of upcoming lease breaks due on the property.

“The proceeds from the disposal will be put towards reducing debt on favourable terms.”