Investor splashes out on Ship Canal House
A Lancashire based commercial property investment company has added to its portfolio with the purchase of a significant, Grade A, Manchester office block.
Investment company HIMOR Group has purchased the Ship Canal House offices in King Street, Manchester, for nearly £23m. The impressive, Grade II Listed building, located in the traditional business district of Manchester offers in excess of 71,000 sq ft of floor space and is currently let to multiple occupants. Recently signed tenant, CLB Coopers Chartered Accountants agreed a 10-year lease for the whole 6,665 sq ft fifth floor last November.
HIMOR Group has indicated it is on an acquisition trail and aims to double the £60m property portfolio it already owns. The company sold 40 Spring Gardens, a 100,000 sq ft Manchester city centre office building, last year for £47.5m.
WHR Property Consultants acted on behalf of HIMOR and have secured a deal that returns a net yield of 6.7%. The property sales literature from GVA Grimley indicates an average rental price of £24 / sq ft with rents ranging between £10 / sq ft and £28 / sq ft. The building has some basement parking and 10 floors of office space and is currently let to 8 tenants. The largest floor plate of 9,800 sq ft is on the second floor.
Mark Williams, WHR Property Consultants, said: “We had to compete with several funds to secure this deal highlighting the healthy demand for quality office investments in the region”.
This is only the fourth time the building has been sold since it was constructed in the 1920’s. Ship Canal House was last sold in 2005 for £19.3m to Catalyst Capital.
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