There has been further positive news for the Manchester commercial property market following yet another commercial property sale in the city. The summer has been a hive of activity in Greater Manchester, with the Salford Quays based Media City nearing competition and also planning permission granted for a new development in St Peter’s Square.
Manchester can add yet another commercial property deal to the growing list, after Scottish Widows Investment Properties has confirmed it is to purchase 101 Barbirolli Square, for a spine tingling £30 million.
The building is located opposite the Bridgewater Hall and is currently occupied by law firm DLA, which has 32,000 sq ft and accountancy firm PwC, which occupies 52,000 sq ft. The sellers, Hermes, are set to lose around £16 million in sale, having purchased 1010 Barbirolli Square at the height of the property boom, back in 2006, for around £46 million. This loss is a clear example of just how much the commercial property market has fallen since the recession’s inception in 2007.
Jones Lang LeSalle, were the advisers to Scottish Widows over the course of the deal and Jonathan Mills, director in Jones Lang LaSalle’s National Investment team, said: ‘This is the first office investment acquisition in Manchester by SWIPPT (Scottish Widows Investment Properties) and comprises the northern Headquarters for two high profile occupiers in PWC and DLA Piper. ‘
Robert Stassen, head of capital markets research at Jones Lang LaSalle, added: ‘While there has been a widening disconnect between investment activity in central London and the rest of the UK over the first half of 2011, key city centre and town centre locations are beginning to enjoy a surge in interest from domestic investors.’
Mark Williams partner of WHR, who advised Hermes on the sale, agreed with Mr Stassen, saying; ‘outside of London, Manchester enjoys the most resolute and balanced of economic climates.’
