LaSalle acquires mixed-use Maybrook House in Manchester for £16.2 million
LONDON July 1, 2015 – LaSalle Investment Management (“LaSalle”), the global real estate investment manager, has acquired a freehold mixed-use building in central Manchester from David Samuel Properties on behalf of a client for £16.2 million, reflecting a net initial yield of 6.6%.
LONDON July 1 2015 – LaSalle Investment Management (“LaSalle”), the global real estate investment manager, has acquired a freehold mixed-use building in central Manchester from David Samuel Properties on behalf of a client for £16.2 million, reflecting a net initial yield of 6.6%.
Maybrook House is located in a prominent city centre position on the corner of one of Manchester’s principle thoroughfares at 48-58 Deansgate and provides 68,556 square feet of commercial space over basement, ground and five upper floors. It is currently let to nine tenants with a weighted average unexpired lease term of 5.3 years across three self-contained retail units, a basement bar, two floors of restaurants and three floors of office accommodation, which is accessed via a separate glazed reception.
The only vacant space at Maybrook House is part of the fourth floor, which extends to 6,813 square foot. A rental guarantee was provided on this space. Notable tenants across the rest of the building include:
- Passepartouts Ltd, operator of the multi-cuisine restaurant and bar Red Hot World Buffet, which occupies 23,353 square feet on ground, first and second floor.
- IBM (UK) Ltd occupies 11,690 square feet of office space third and fourth floors.
- Lopian Wagner Solicitors occupies 9,228 square feet on fifth floor of the building.
- Trailfinders occupies 5,015 square feet on the ground floor and part of the basement level.
- Tesco Stores Ltd occupies a 4,672 square feet ground floor retail unit.
The rents in the building range from £14 - £16.50 per square foot on the leisure and office space and £85 - £95 per square foot Zone A on the retail units.
Maybrook House is strategically positioned between Manchester’s traditional central business district, Spinningfields and the city’s retail and leisure core. It is located on an island site at the corner of Deansgate, Blackfriars Street, which offers direct links to Salford, and The Parsonage, where the city’s highest value converted residential values have been seen.
Katie Hynard, asset manager, LaSalle Investment Management said: “Maybrook House is an attractive value-add opportunity with significant asset management potential. While it is currently an income producing asset, it could be redeveloped in the medium term, given its strategic location, to deliver more office space or alternative uses. The Manchester office market has continued to perform well in 2015 with demand remaining strong for good quality secondary space, such as Maybrook House. This acquisition is part of our strategy to secure good quality assets that will provide a strong return on investment.”
LaSalle was advised by Deloitte Real Estate; David Samuel Properties was advised by GVA.