Office market move for regeneration experts
THE SWERVE COMES AS BROKERS PREDICT A BUSY AUTUMN QUARTER FOR THE CITY CENTRE OFFICE MARKET
A MANCHESTER regeneration specialist has swerved into the city centre office market with a pledge to ‘do something cool.’
Regeneration specialist, Capital&Centric, better known for large-scale residential schemes like Kampus, paid more than £5.5m for the 22,000 sq ft block at 15 Quay Street.
The move comes as brokers predict a busy autumn quarter for the city centre office market, with good second-hand floorspace facing growing demand but shrinking supply.
The off-market deal from a private individual reflects a net initial yield of 5.75 per cent. The move represents a change of direction from Capital & Centric, which has so far steered clear of traditional city centre offices.
The building is partially let to Jelf Insurance and Uniregistry, a web services provider. One floor of 3,949 sq ft remains vacant. C&C purchased the building in just five working days. The building was acquired with cash funds.
Tim Heatley, founder director at Capital&Centric, said: “We have a diverse appetite when it comes to new opportunities. Essentially, our only parameters are whether there is value to add and if there is an opportunity to do something cool.”
Heatley says the move into traditional city centre offices completes a full-house of property projects for the developer behind the £250m Kampus apartment scheme at Aytoun Street.
“We have delivered, or are currently on site with, every major property use; hotel, residential, office, leisure and industrial. In many respects the acquisition of 15 Quay Street is unsurprising, it’s a building in a fantastic location, with potential for C&C to add value though our approach to design and knowledge of the Manchester office market,” he says.
“As a regeneration focused developer this isn’t the sort of opportunity that you’d usually associate with Capital&Centric but we can apply our skill set in diverse investment and development scenarios plus we are always looking for opportunities to expand our portfolio.
“By pro-actively managing the building through a number of initiatives, we are confident that we will further enhance the offering at 15 Quay Street.”