Cromwell sells Manchester office building for €7.8m (GB)

Cromwell sells Manchester office building for €7.8m (GB)

Cromwell Property Group, acting on behalf of Cromwell European Diversified Fund, has sold Poseidon House in Cheadle, South Manchester, to a London based private investor for €7.8m (£6.9m), reflecting a net initial yield of 6.80%. The 35,842ft², three-storey office building is fully let to Thales for a further 11 years. The company uses Poseidon House as an HQ from which to service contracts with The Ministry of Defence, Transport for London and The UK Space Agency.

 

Stephen Cahoon, Head of Asset Management at Cromwell Property Group in the UK, commented: "This was a great example of a straight forward business plan, well executed, to add significant value for our client. In 2014, we identified an opportunity to acquire Poseidon House at what we considered to be opportunistic pricing, we worked with our tenant to ensure they were satisfied with the building and then agreed an early lease extension. The quality of both the building and the tenant then made for a competitive sales process, achieving pricing which crystallised an impressive 17.9% IRR.”

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