MRE, the largest auto and transport group in Israel, has made another investment in the UK property market with the purchase of Peter House, a Landmark office property located on St Peters Square at the hub of Manchester’s central business district.
This was the final asset to be sold by a JV between Hermes and Aviva which will now be wound up. MRE have managed to secure this building with strong growth prospects at an attractive price level due to the termination of the JV.
Circa 80% of the income comes from Regus with the remainder from local operators. The building benefits from low office base rents of c. £10.50 psf and the purchase reflects a net initial yield of 7.5%.
The building offers an excellent opportunity for future performance due to already core but improving location, low capital value psf, reversionary rental levels, and asset management/development opportunities.
MRE was advised by Excellion Capital and WHR. This transaction follows closely on the heels of MRE’s purchase of Arundel Gate in Sheffield earlier this year.
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