Metro is located within the Salford Quays / Media City business area, approximately two miles to the west of Manchester city centre. The Exchange Quay Metrolink station is next to the building with a journey time of 18 minutes to the city centre.
Metro was developed in 2008 and provides 71,000 sq ft of BREEAM Excellent office space over four upper floors. Secure parking for 228 cars is situated across two levels beneath the building.
At the point of purchase there was little required in terms of asset management, as the property was fully let to four tenants producing an income of £1.15 million per annum, which will increase to £1.53 million per annum in April 2017. The average lease length is 8.3 years to expiry (5.6 years to break) and the building is let off a low average rent reflecting £21.50 per sq ft, including the car parking spaces.
The pricing reflects an attractive yield, relative to the quality of the real estate, of 6.2% net initial yield, rising to 8.3% in April 2017 and a capital value of under £250 per sq ft, which is close to the cost of construction. We see future upside in the Greater Manchester area, as the Northern Powerhouse continues to gain momentum.
Key property details