Lancaster Buildings retail space sold in seven-figure deal

The Manchester-based capital markets team of commercial real estate firm CBRE has sold the retail parade within the city’s Lancaster Buildings for for £7.1m.

AVIVA Investors bought the Deansgate property, with the final price representing a 6.82% net initial yield for the sellers.

The director of capital markets at the CBRE office in Manchester, Colin Thomasson, said: “We were delighted to have arranged the sale of Lancaster Buildings to AVIVA Investors.

“The property is in an excellent location close to a number of top retail destinations and high-end leisure operators in the heart of Manchester City Centre.”

Colin added: “The deal is indicative of the investor appetite for retail investment opportunities within central Manchester.”

Peter Rowe, from Manchester-based consultancy KLW Property, advised AVIVA Investors during the purchase of the Lancaster Buildings retail parade, which comprises six ground-floor retail units amounting to more than 12,000 sq ft of space. Together, the units generate £510k annually.

The units are currently occupied by operators such as Caffé Nero, Barburrito, Cancer Research, Subway and Regis.

AVIVA Investors’ Simon Green said: “This was an attractive opportunity to acquire a well let retail parade in a dominant regional centre for a yield approaching 7%.

“Manchester continues to receive significant inward investment and occupier interest and the units provide well-configured retail accommodation in a strong pitch.”

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