Legal & General Investment Management Real Assets (LGIM Real Assets) has sold Virgin Media House, a 110,000 sq ft headquarters office building on Concord Business Park, South Manchester.
The building has been sold, on behalf of LGIM Real Assets’ Linked Life Property Fund, to Global Mutual for £19.7 million, reflecting a net initial yield of 8.29%. Cushman & Wakefield acted for LGIM Real Assets on this sale.
The office building is let to Virgin Media Ltd with approximately seven years unexpired on the lease. The property was constructed in 1990 on a 7.83 acre site and provides over 500 car parking spaces.
Craig Westmacott, Senior Fund Manager at LGIM Real Assets commented: “The fund successfully completed both a re-gear with the occupational tenant and the Freeholder Manchester City Council the subsequent disposal is a completion of the Business Plan for the asset delivering strong returns to our investors.”
Craig Barton, Partner at Cushman & Wakefield said: “The sale represents the culmination of a long Cushman & Wakefield / L&G relationship at Virgin Media House, and despite Brexit concerns, the sale attracted strong interest from UK and overseas investors, which allowed us to crystallise an excellent result for our client, but with further potential for Global Mutual to capitalise from continued expansion at the adjacent airport.”
Simon Marshall, Associate at Cushman & Wakefield added: “The South Manchester office market continues to move on at pace with a dearth of quality accommodation on large floor plates providing the impetus for rental growth. Virgin Media House not only offers a secure income stream to a quality tenant, but the future potential to capitalise on the ever increasing demand for quality accommodation around Manchester Airport.”