TriOffice and joint venture partner The Pears Group have acquired the 55 Spring Gardena office building in Manchester from an institutional investor for an undisclosed price.
The purchase by Tri7 Group’s new office investment arm is the first it has made since it launched last month.
The 55,385 sq ft building, which is arranged across ground and nine upper floors, is located on the corner of Spring Gardens and Fountain Street in Manchester’s central business district.
The asset is let to a range of different occupiers, including Clarke Willmott, SysGroup and CAF Rail, off a low average passing rent of £28.86/sq ft, offering significant reversionary potential.
Samuel Castle, founding partner of Tri7 Group, said: “We set up TriOffice last month to capitalise on value-add opportunities within the office sector. We believe that the scarcity of high-quality office stock, combined with the occupational resilience that has been witnessed in the major regional office markets, will lead to strong performance for those who upgrade and reposition prime-located office stock at this point in the cycle.
“For an opportunistic and agile investor like Tri7, we believe now is the right time to deploy capital into the sector and 55 Spring Gardens is a great example of the type of schemes we’re looking at across the UK. We are delighted to be working with The Pears Group on our maiden acquisition into the TriOffice strategy.”
Jonathan Rose, group MD of The Pears Group, added: “We are delighted to have formed a joint venture with Tri7 and their team, deploying capital into such a well-located asset.”
Craig Barton, investment partner at Knight Frank, which advised the vendor on the deal, said: “This was a fantastic transaction to be involved with and our team is delighted to have helped our client with their exit, at competitive pricing. We would also commend the buyer for their performance in concluding this deal, and look forward to seeing their plans to take 55 Spring Gardens onwards.”
