The cream of the crop of Manchester’s property finance scene have come together for the sale of Heron House. The property was sold for more than £36 million.

The 123,000 square foot property, which is stretched over six floors, was built in 1981 and based on Albert Square, Manchester. The building is currently let to Manchester City Council, housing its Register Office, as well as business advisers Grant Thornton. Manchester-based Adam Geoffrey Management is the purchaser.

The acquisition will not affect any of the existing lease-hold arrangements.

Nationwide Property Finance provided the funding for the deal, with legal advice coming from the property finance team of leading law firm, Cobbetts LLP.

Darren Switzer of Nationwide Property Finance, comments: “This is a great transaction to finish off what has been a fantastic year for the Manchester property finance scene.”

Partner at Cobbetts LLP, George MacMillan, added: “The property is in an excellent location and provides huge long-term prospects for Adam Geoffrey Management.

“It is great to see that such a big deal was structured and completed by Manchester professionals. This is a real reflection of the growth of the property finance scene in the city centre.”

Bruce Poizer of DTZ Manchester and Andy Barrs of Barrs Freer Smith were joint agents to the vendor.

Bruce Poizer, DTZ Investment Director comments: “The main attraction of this investment is that it is let in its entirety to the local authority for an unbroken lease term in excess of 28 Years. With a guaranteed net annual rent of £1,886,880 the investment offers very secure bond like qualities.

“In addition to this, the building is a very low density development, occupying a site of almost an acre, situated on an island site directly opposite the Town Hall. This will provide added comfort to the investor given that the site alone would command a very high value at the end of the current lease.

“These attributes were reflected in the purchase price which provided a net return to the purchaser of 4.9%.”

Gareth Rees at CBRE Manchester advised Nationwide Property Finance. Law firm Zatman & Co advised Adam Geoffrey Management.

Picture caption: George MacMillanm, Cobbetts