Sale of 81 Fountain Street, Manchester
The Duchy of Lancaster has sold its interest in the freehold of a prestigious 8-storey office building in the heart of Manchester city centre to Mercer Real Estate Partners Fund II (MREPII). The sale is part of the Duchy’s ongoing strategy of active asset management and diversification across its portfolio and follows three commercial acquisitions earlier this year.
Acquired by the Duchy in 2008, 81 Fountain Street was constructed in the late 1980s. Comprised of over 40,000 square foot of prime commercial office space, it was fully let to private healthcare company BUPA until 2013. Currently, three floors of the building are occupied by national law firm Hill Dickinson, while the ground floor is shared by Blue Arrow and DX Network Services.
Commenting on the sale, Duchy Head of Urban Mike Andrews said: “We constantly monitor and review our commercial portfolio in line with market conditions and enhance the overall value of the Duchy estate. There is strong demand for city centre offices offering refurbishment opportunities and we are pleased to have completed the sale within days of accepting the offer for the freehold from Mercer Real Estate Partners.”
Mercer Real Estate Partners is a privately owned real estate investment firm with interests in the office, residential, retail, industrial and hospitality sectors across the UK.
Colliers acted for the Duchy of Lancaster and Lambert Smith Hampton acted for Mercer Real Estate Partners.