One of the tallest buildings in Manchester has been sold for £7m above the asking price. City Tower, in Piccadilly Gardens, was placed on the market earlier this year for £125m and immediately attracted interest from potential buyers.
In April it was reported that a Middle Eastern investor was preparing a bid for the 30 storey 1960s office building which Bruntwood acquired for £65m in 2004.
Now, Guernsey based Schroder Real Estate Investment Trust has announced that it has acquired a 25 per cent interest in the property alongside Schroder UK Property Fund and Immoblien Europa Direkt for a combined price of £132m.
The sale price is one of the biggest ever achieved in Manchester and comes hot on the heels of the news that a record headline rent has been agreed for 5,000 sq ft at 3 Hardman Street in the Spinningfields district.
Together the sale and the lease reflect the turnaround in the Manchester office market which has seen a significant increase in take up during the first quarter of the year.
In its latest market spotlight Savills says that there has been a marked rise in investor interest in the city driven by the improving occupational market.
This renewed demand will lead to further rental increases, Savills forecasts, with growth of 3.2 per cent per anum expected over the next five years.
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