French investment firm Corum Asset Management has completed the £13.85m purchase of a South Manchester office building in the largest deal of its type for the area this year.
Seller PIN Property agreed the deal for the 61,000 sq ft No. 1 Dovecote in Sale after carrying out a comprehensive refurbishment in conjunction with M3 Construction.
The deal represents a 7% yield for PIN Property, and will see the building fully let to Verastar – a services firm specialising in telecommunications, water and energy for small and medium-sized businesses – at £16.50psf with a WAULT of 8.5 years.
Verastar will be relocating its operation from Sharston, and is now in the process of moving 500 staff into what will become its headquarters.
Cushman & Wakefield advised on the sale for PIN Property while Ryden advised Corum Asset Management.
Craig Barton, Partner, Capital Markets at Cushman & Wakefield, said: “The off-market sale of No. 1 Dovecote is testament to the quality of our client’s highly-specified refurbishment, which initially attracted Verastar to choose the building as its HQ campus.
“Subsequently, the combination of building quality, an excellent occupier commitment to the building and its prominence to the M60, encouraged Paris-headquartered Corum Asset Management to approach on the investment opportunity.”
Phil Meakin of PIN Property commented: “The letting and subsequent sale of No.1 Dovecote represents an outstanding success for the PIN Property team and reinforces our continuing focus on bringing new commercial space to the market.
“We look forward to announcing further transactional activity in the new year.’’