Orchard Street acquires 50,863 sq ft office in Manchester

Orchard Street Investment Management LLP, the specialist commercial property investment manager, has purchased Bauhaus, Quay Street, Manchester from Blackrock for £16.25 million. The acquisition was made on behalf of St James’s Place property funds and reflects a net initial yield of 7.6%.

Bauhaus is a 50,863 sq ft prime Grade A multi-let office, situated opposite Spinningfields business district and adjacent to the proposed redevelopment of the ITV site in Manchester. The fully-let property, occupied by Irwin Mitchell, Gazprom and Evolution Banking, has an annual passing rent of £1.31 million, reflecting an average rent of £23 per sq ft. The average weighted lease length is five years to lease expiry and four years to the earliest tenant break option.

Commenting on the acquisition, John Humberstone, Partner at Orchard Street, said:

“Bauhaus is a striking, high quality, well let asset in a well established City Centre location. Being immediately adjacent to Spinningfields with an excellent car parking ratio it has solid rental growth prospects. There are a number of nearby high profile developments in the pipeline which will only go to improve the location further. We consider this asset to be a great addition to the St. James’s Place portfolio. ”

DTZ advised Orchard Street and Blackrock was advised by JLL.