M&G Real Estate has acquired a 165,000 sq ft newly built prime office building in central Manchester for £105 million, at a net initial yield in excess of 5.3%. The acquisition is a three-party joint venture made on behalf of its capital solutions business headed by Martin Towns.

The purchase of 101 Embankment, which is located at the heart of the Cathedral District in central Manchester, has been made on behalf of M&G Real Estate’s UK core commercial property strategy in partnership with an Asian investor and West Yorkshire Pension Fund, one of the UK’s largest pension funds.

101 Embankment is the new head office of insurance firm Swinton, which has been let on a 10-year term. The high-specification premises include a 442 space carpark, let to Q-Park on a separate 35-year term. The leases include guaranteed rental increases.

Martin Towns, head of capital solutions, M&G Real Estate, says: “There is an increasing trend in global real estate for large institutional and sovereign wealth investors to partner with established fund management companies through joint ventures and separate accounts. We believe in investing time to truly understand our clients’ unique preferences and requirements, using our skills and experience to create bespoke strategies and investment opportunities that work for them.”

Photo: embankmentmanchester.com