Schroder Property acquires City Tower, Manchester with Zurich Investment Foundation
Schroder Property Investment Management has exchanged contracts to acquire City Tower,
Schroder Property Investment Management has exchanged contracts to acquire City Tower, a landmark, mixed use investment in the Central Business District of Manchester in the UK. Immobilien Europa Direkt (IED), an investment group of Zurich Investment Foundation and managed by Schroder Property is acquiring a 25% interest in the property alongside Schroder Real Estate Investment Trust (SREIT) and Schroder Property Fund (SPF) for a total price of £132 million. The price reflects a headline net initial yield of 7%.
City Tower provides 57,200 sqm of office, retail, leisure and hotel accommodation on a three acre island site including 456 car parking spaces. It is located in a prime location within Manchester city centre with frontage to both Piccadilly Gardens and New York Street. The property is let to over 100 tenants and has current average unexpired lease term of 10.8 years. The total investment for IED is £33 million (approximately €40 million).
Tony Smedley, Head of Continental European Investment at Schroder Property, commented:
“This is the first acquisition in the UK for Immobilien Europa Direkt. The purchase is consistent with our investment philosophy of acquiring assets with good fundamentals where we can add value over time. The Pan European portfolio of IED now comprises high quality assets of over €200 million in Munich, Frankfurt, Berlin, Paris, Brussels and Manchester with similar growth potential.”
Immobilien Europa Direkt, an open ended Euro denominated fund, was launched by Zurich Investment Foundation and has been designed specifically for Swiss pension schemes. Its investment strategy is focused on providing investors with a diversified portfolio of commercial real estate in the main western European markets.
Photography of the City Tower in Manchester is available.
For further information, please contact:
Estelle Bibby, Senior PR Manager, Schroders
Tel: +44 (0)20 7658 3431 / estelle.bibby@Schroders.com
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Schroders has managed property funds since 1971 and currently has £11.0 (€13.4 /US$18.4) billion of gross property assets under management as at 31 March 2014.
Most of the property funds referred to are unauthorised collective investment schemes as defined in the Financial Services and Markets Act 2000. Promotion of these funds is restricted and access to full information about these funds is only available to those exempt from the restriction. For further information about Schroders’ property business visit www.schroderproperty.com
Schroders is a global asset management company with £268.0 billion (EUR324.1 billion/$446.8 billion) under management as at 31 March 2014. Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors.
With one of the largest networks of offices of any dedicated asset management company, we operate from 37 offices in 27 countries across Europe, the Americas, Asia and the Middle East. Schroders has developed under stable ownership for over 200 years and long-term thinking governs our approach to investing, building client relationships and growing our business.
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