7th May 2014 12:33
LONDON (Alliance News) - Schroder Real Estate Investment Trust Ltd Wednesday said it has exchanged contracts to acquire a 25% stake in City Tower, a mixed-use development in central Manchester in a deal worth GBP33 million.
The company is acquiring the property alongside Schroder UK Property Fund and Immobilien Europa Direkt, both managed by Schroder Property Investment Management, for a total price of GBP132 million, reflecting a net initial yield of 7%.
City Tower consists of 615,429 square feet of office, retail, leisure and hotel accommodation on a three-acre island site, including 456 car parking spaces. The offices are let at a low initial rent of GBP17 per square foot, with tenants including the National Institute for Health and Care Excellence and the Ministry of Justice
Completion of the deal is subject to freeholder and other consents, which the company expects to be cleared within four to six weeks.
The stock was trading flat 53.75 pence Wednesday.
By Anthony Tshibangu; [email protected];
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