Savills : Asian investor banks on Manchester with Market Street acquisition

Canada Life Investments, represented by international real estate advisor Savills, has sold the flagship Lloyds Bank on Market Street in Manchester to a private Asian client of Michael Elliott LLP for £13.23 million. The deal reflects a net initial yield of 4.14%.

The ground and upper floors of the property, which total 19,427 sq ft (1,805 sq m), are let to Lloyds until 2023 for an annual rent of £580,000. An additional 3,661 sq ft (340 sq m) of space suitable for retail or leisure use is available in the basement.

Peter Mallinder, investment director at Savills, comments: 'This prime investment opportunity attracted a huge weight of interest from both UK institutions and overseas investors. Market Street is one of the strongest retail pitches outside of London and with further rental growth forecast we expect it to go from strength to strength.

'We also anticipate continued capital growth and demand in prime regional cities such as Manchester as investors look to capitalise on the yield spread between Central London and the regions. This is reflected in the sale price achieved.'

The purchaser was represented by Dominic Rowe of Michael Elliot.