Swiss Life Asset Managers UK has put the 86 Deansgate office and leisure development in Manchester city centre up for sale, seeking offers in excess of £9.55m.
The 48,967 sq ft building offers flexible Grade A office floor plates ranging from 2,100 sq ft to 8,600 sq ft on the five upper floors, with two ground floor prime retail units and a basement containing 19 parking spaces
It is let to a range of different occupiers, with 53% of the building’s income derived from the offices and 37% from the leisure space. The building has a contracted passing income of £749,528 per annum and the current passing rent reflects a 50% discount to prime new build space, which means investors have the opportunity to add significant value by reinvigorating 19,354 sq ft of available office space, as well as through active asset management with the existing tenants.
An historic planning permission for a two-storey glass box extension to add a further 14,000 sq ft of office space on the sixth and seventh floors could also be implemented.
Will Kennon, executive director at CBRE Investment Properties, which has been appointed to sell the building, said: “The surrounding micro-location of Deansgate and St Mary’s Parsonage is on the cusp of some of the most exciting new commercial-led development with schemes such as; Albert Bridge House [by Oval], Alberton [by Bruntwood], 39 Deansgate [by Candour] together with Property Alliance Group’s extensive mixed-use redevelopment at Renaissance undoubtedly extending the city’s prime office core.
“86 Deansgate, which sits centrally in between these developments, is therefore set to be a major beneficiary, and we would expect the asset to benefit from substantial occupier demand and rental growth over the coming cycle.”
