Xerox Pension Fund has paid £6m for Manchester’s 42,000 sq ft (3,900sq m) Oddfellows House, Fountain Street. The net initial yield is around 8.2%.
The deal follows a number of other acquisitions of multi-let Manchester city-centre office buildings – including Peter House and Abbey House – and highlights the fact that institutional demand remains strong. Leases are understood to have 12 years to run and redevelopment is considered a strong possibility.
The sale was agreed earlier this year but complex sale-and-leaseback arrangements are understood to have slowed exchange.
Xerox is an in-house client of Baring Houston & Saunders, advised by King Sturge. Specialist Manchester agent Christopher Dee acted for the vendor, Manchester Unity Friendly Society.
EGi News 27/10/00
