Investec Bank has announced that Investec REALIS, the equity strategy that it launched last year, has acquired Citygate, a 47,000 sq ft office in the heart of Manchester’s central business district, for an undisclosed price.
XLB will be responsible for asset managing the property, alongside sourcing future acquisition opportunities.
The building underwent a comprehensive refurbishment in 2016 and is currently circa 90% occupied. REALIS and XLB intend to undertake a further, sustainability-led modernisation of the asset, including improving the amenities and refurbishing the building’s common areas.
Tom Punch, real estate equity specialist at Investec, said: “Recent repricing and ongoing market dislocations has 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.
