Investec REALIS has acquired Citygate, a 47,000 square feet office located in the heart of Manchester’s CBD, in partnership with XLB.
XLB will manage the asset and seek future acquisition opportunities.
The building, which was fully refurbished in 2016, is currently around 90% occupied by tenants including the Secretary of State and Barclays Plc.
REALIS and XLB plan to modernise the property with a focus on sustainability, enhancing amenities and refurbishing common areas to meet modern occupier needs and unlock its reversionary potential.
This acquisition is the second for REALIS, both focused on regional offices.
The strategy aligns with Investec’s commitment to equity investments in areas like industrial and logistics development.
Tom Punch, real estate equity specialist at Investec, said: “Recent repricing and ongoing market dislocations has created a highly favourable entry point to acquire UK office assets with strong long-term fundamentals and significant reversionary potential.
“This transaction fits our core strategy for offices and is our first with XLB, with whom we hope to build a long-term relationship, leveraging their asset management expertise and market insights.”
Stephen Wormald, partner at XLB, said: “Having established a strong track record in Manchester, we are excited to partner with Investec REALIS to deliver our shared vision for Citygate.
“With the prime core enjoying the lion’s share of the take up and rental growth in recent years, the building is perfectly situated to benefit from these structural tailwinds.”
