Invesco Real Estate (IRE), the global real estate investment manager, announced that it has exchanged contracts on 1 New York Street, a BREEAM 'Excellent'-rated office property in central Manchester, for the Invesco Real Estate - UK III Fund for £41.65 million (50.3 mln.).
1 New York Street was constructed in 2009.
Toby Simon, Invesco Real Estate's Director of Fund Management, says: "We are delighted with the acquisition of this property, which is regarded as one of the top five buildings in a key regional market. It is thanks to our local transactions team's relationships within the marketplace that enabled us to secure this highly regarded property in the North West. The investment complements the Fund profile well by focusing on strong real estate fundamentals of a high quality property in a core location and benefits from being multi-let. The tenant interest in the building is testament to the quality of the asset."
1 New York Street was constructed in 2009 and is a 108,670 ft² (10,060 m²) grade-A office property with 4,065 ft² of ground floor retail space and underground parking. Its BREEAM 'Excellent' rating and modern, high quality outfitting has attracted strong tenants such as ADT Fire and Security Plc, Marks and Clerk LLP and CNA Insurance Company. It is conveniently located within 50 meters of one of Manchester's transport infrastructure hubs.
"In our view, the Manchester office market is regarded as one of the UK's strongest regional markets, with strong underlying tenant demand and continuing investment interest from both domestic and international investors. With a shortage of new high quality space coming to the market in the foreseeable future, the property is well positioned to benefit from being attractive to tenants. This acquisition marks the fourth investment for our third UK fund investing German-speaking institutional investors' capital into the UK real estate markets. Our investors are pleased with the success of the investment strategy to date, which has seen us acquire high quality properties, let on long-term leases to good covenants in today's market environment," says Toby.
WHR Property Consultants LLP acted on behalf of IRE and Jones Lang LaSalle acted on behalf of Bruntwood, the seller.