London-listed property company Helical is selling a portfolio of three Manchester office assets, to real estate funds managed by Pictet Alternative Advisors and XLB Property, for £119 million.
Helical said the price reflects a blended net initial yield of 5.2% on contracted rent and a blended capital value of £329 per sq ft. The net proceeds are at a marginal premium to the March 2020 and September 2020 book values and will be used for new opportunities and to repay debt.
The portfolio is known as The Powerhouse Portfolio and includes The Tootal Buildings, two Grade II listed and interlinked office buildings providing 245,907 sq ft of office space with a total headline rent roll of £4.7 million.
Another asset, 35 Dale Street, is a Grade II listed building situated in the heart of Manchester’s Northern Quarter. The building provides circa 49,130 sq ft of office space, as well as 7,079 sq ft of F&B space producing a total headline rent roll of £1 million pa.
Fourways is adjacent to 35 Dale Street and is also Grade II listed. The former packing warehouse has recently been subject to a refurbishment programme and has 48,402 sq ft of office space as well as 11,607 sq ft of F&B Space. Its headline rent roll is £1 million pa.
Charlie Baigler, head of real estate acquisitions at Pictet said: “The Manchester office market has proven to be extremely resilient, with excellent supply and demand fundamentals. Manchester is attracting and retaining talented young professionals, the city is now the largest tech hub in the UK outside of London and is proving to be a significant beneficiary of ‘northshoring’.”