Lothbury Investment Management (LIM), on behalf of Lothbury Property Trust, has completed the purchase of one of Manchester’s pre-eminent office buildings for £19.9 million from a syndicate of private owners.
Vantage Point occupies an island site on the east side of Hardman Square, the main focus of the office buildings in the city’s Spinningfields area, which lies on one of Europe’s largest urban regeneration sites.
The property comprises a modern 11-storey, multi-tenanted office block with a retail/banking unit, let to AIB, and the main reception at ground floor level, nine upper office floors and a basement car park. The building is in the Deansgate Conservation Area and is constructed to a high architectural quality.
Mike Toft, senior fund manager and director of LIM, said: “Manchester has attracted considerable investment over recent years and the city’s office market has shown strong signs of recovery over the past year or so, with rents increasing and rental growth prospects for the future looking good. This is driven by strong demand and limited availability of good quality office space.”
Vantage Point benefits from smaller office plates than most other office buildings in Spinningfields so provides an excellent entry point for strong tenants that employ between 20 and 100 staff who are seeking Grade A office space. LIM has identified that there is considerable demand in the city for office space of the size available in Vantage Point.
Mike Toft continued: “As one of Manchester’s best office buildings and with some void space available to let, we are in an excellent position to market Vantage Point very actively, capture the current positive market sentiment and achieve rental growth. Key asset management will centre on letting the vacant spaces, with improvements made to the fourth floor, which focuses on replacing a parapet wall with glazing to afford better views of Hardman Square, and potential significant improvements to the reception area.”
The purchase is in line with LIM’s strategy to secure high quality assets in prime locations with strong re-letting prospects and represents another important purchase for LIM in a very demanding market. It is one of a number of recent purchases outside London and the South East, such as their £17.42m purchase of 78-90 Buchanan Street in Glasgow this July.
LIM were advised by Tudor Toone and OBI Property. The vendors were advised by B8 Real Estate.