The Little Bit Of Manchester That Is Now Portsmouth
Portsmouth has long been renowned as the home to intrepid adventurers, ready at the drop of a tricorn hat to venture into unknown waters: now its city council has sailed into Manchester and carried off a 22K SF office block.
CBRE Global Investors has sold the refurbished office building to Portsmouth City Council achieving a sale price equating to a net initial yield of 4.75%.
In 2014, the last time the block changed hands it sold for £3M, a net initial yield of 10.72% although that fell to 5.8% after purchasers costs.
The property's sale benefitted from good timing: the nearby St Michael's development, fronted by Gary Neville, is finally ready to get underway on one side of Queens House, whilst M&G Real Estate are reported to be edging closer to action on their Brazennose House development immediately opposite on the far side of Lincoln Square.
“This prime office investment attracted more than 10 credible offers to purchase the property ahead of the quoting level," CBRE Senior Director Will Kennon said. "We ultimately chose Portsmouth Council who performed in exemplary fashion, reaching exchange and simultaneous completion within the 15 days time period agreed at the outset of the transaction.”
"In light of the development and improvement of Lincoln Square, including 125 Deansgate, Brazennose House and Heron House, Queens House has excellent potential for Portsmouth City Council to benefit from increased rental and occupier demand in the medium term”.
CBRE Manchester acted on behalf of CBRE GI. Scott Gemmell, director, LSH’s Capital Markets team in Manchester, acted on behalf of Portsmouth City Council.