Schroder Real Estate Investment Trust Limited has acquired St. Ann’s House in Manchester for €17.3m (£14.7m). The mixed-use office and retail asset comprise 51,885ft² building, of which 96% are occupied. It is prominently located on St. Ann’s Square and benefits from its proximity to two tram stations that are within four and eight minutes’ walk respectively.
Nick Montgomery, Fund Manager of SREIT, commented: “This acquisition is in line with the strategy to selectively acquire income-producing assets with good fundamentals and the potential to add value through active asset management initiatives, with a focus on improving sustainability credentials. Compared to other major cities, Manchester, which is one of the Company’s high conviction locations, currently has the lowest office vacancy rate, and we expect relatively higher growth in office rents over the next five years.”
The appeal of St. Ann’s Square to high-quality luxury retailers is reflected in the current tenant mix with complementary retailers located around the subject asset. During the pandemic rents were rebased by the current landlord and there are currently no arrears.
