The Royal Exchange, built in 1849, occupies a strategic island site of almost two acres within Manchester’s central retail and office core.
The 280,000 sq ft Royal Exchange was the largest commercial building in the world in 1921, and has only changed hands once before – in 1968 – to M&G Real Estate.
The purchase price of circa £45m reflects a 6.25% yield.
Richard O’Boyle, Executive Director at Trinity IM, said: “The Royal Exchange once embodied Manchester as a great trading city, and at its peak boasted over 11,000 members. Now that a significant portion of the building sits empty, we look forward to working with all stakeholders as we explore ways in which to elevate The Royal Exchange back to its rightful status within the City.
“This investment underlines our commitment to the City of Manchester, which remains a vibrant and attractive city in which to invest,” said Adam Shah, Senior Vice-President at Starwood Capital Group, which is executing the transaction through a controlled affiliate.
Nick Stewart, Partner at MMX Retail who acted on behalf of the Joint Venture, adds: “This is an exciting acquisition in an extremely vibrant, top tier UK City. The Royal Exchange is underpinned by some core income and provides a number of asset management opportunities. We look forward to working with the joint venture to deliver those opportunities and ensure that The Royal Exchange cements its position as an iconic building in the heart of the City, reinvigorating the cultural value it offers to millions of local people.”
Source CoStar