Investec Bank Investec Bank plc (Investec) announces that Investec REALIS (REALIS) has acquired Citygate, a 4,366m2 office in the heart of Manchester’s CBD.
In line with REALIS’s strategy of working alongside best-in-class operating partners, XLB will be responsible for asset managing the property, alongside sourcing future acquisition opportunities.
Offering modern and contemporary space in a prominent CBD location, the building underwent a comprehensive refurbishment in 2016 and is currently c. 90% occupied, predominantly by the Secretary of State and Barclays Plc.
REALIS and XLB intend to undertake a further, sustainability-led modernisation of the asset, including improving the amenities and refurbishing the common areas, to deliver a best-in-class scheme that meets modern occupier demand and enables them to capture the asset’s significant reversionary potential.
The Manchester CBD office occupational market enjoyed a strong 2024, with Grade-A take-up in Q3 76% higher year-on-year. With a limited development pipeline, prime rents are forecast to increase 18% over the next five years.
This transaction is REALIS’s second acquisition, both of which have been of regional offices, reflecting one of its high conviction areas, along with industrial & logistics development and select Living assets.
Tom Punch, Real Estate Equity Specialist at Investec, commented: “Recent repricing and ongoing market dislocations have created a highly favourable entry point to acquire UK office assets with strong long-term fundamentals and significant reversionary potential. This transaction fits our core strategy for offices and is our first with XLB, with whom we hope to build a long-term relationship, leveraging their asset management expertise and market insights.”
Stephen Wormald, partner at XLB, added: “Having established a strong track record in Manchester, we are excited to partner with Investec REALIS to deliver our shared vision for Citygate. With the prime core enjoying the lion’s share of the take-up and rental growth in recent years, the building is perfectly situated to benefit from these structural tailwinds.”
Investec REALIS and XLB were advised by CBRE and Addleshaw Goddard.
Image source - Investec.
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