Property firm Bruntwood is to begin sell off some off its prominent assets this month, according to the Manchester Evening News.
The report states that the first commercial property to be sold off is 1 New York Street, a new-build in Manchester. It is understood it will be sold for around £40 million, with estimates that the net initial yield will be approximately 6.5 per cent. The article says that the 110,000 sq foot property will be sold to American firm Invesco.
Bruntwood owns a number of properties, many of which are located in Manchester. It is understood that properties in the lively northern city are currently in demand, prompting Bruntwood to put the New York Street building on the market.
Experts say that the profit from the commercial property sale might be used to help fund the purchase of a £20 million property in the centre of Birmingham.
However, sources told reporters that Bruntwood’s core Manchester portfolio of properties would not be sold. They told MEN that the company was not about to become a property trader.
MEN quotes a source close to Bruntwood as saying, “The hard commercial reason for selling is that Bruntwood can sell newly-built properties like this at today’s prices, but continue to buy older buildings at the much cheaper prices of the early 1990s.”
