Schroder Real Estate Investment Management (“Schroders”) has secured over 28,000 sq ft of new office lettings at City Tower. City Tower is a vertical business district in central Manchester, close to Manchester Piccadilly rail station. This follows completion of a major refurbishment to provide 36,000 sq ft of high quality office space across four floors of 9,000 sq ft and reposition the ground floor reception and lift lobbies throughout the building to support the 3,000 people working in City Tower.
Schroders has completed a new 10 year lease extension with international recruitment company Hays Specialist Recruitment Limited, which currently occupies a total of 18,000 sq ft across the fourth and fifth floors of City Tower. This agreement is in addition to a recent 9,000 sq ft letting to iHub, the state-of-the-art office space provider, for the entire 20th floor of the building on a 10 year lease. Furthermore, Schroders has also agreed a new five year lease for 1,317 sq ft with Sonoco, the global provider of packaging products and services, who will occupy space on the 26th floor.
In addition, Schroders has also agreed a number of other new lease regears, including a 10 year lease extension with architecture firm Sheppard Robson and a five year extension with customer science company, Dunnhumby Limited.
Since acquisition in 2014, Schroders has undertaken a capital expenditure programme, appointing architects Sheppard Robson to enhance the reception, central mall area, common parts and vacant offices to deliver high quality office space, capitalising on a shortage of good quality refurbished office accommodation in Manchester City Centre. Since then, Schroders has welcomed a number of new tenants to the building which include LG Energy Group, Access Systems, Godel, Saffery Champness and property management company MJ Mapp.
City Tower today offers 340,000 sq ft of office space, including the highest commercial office space in Manchester, as well as a 280-bed four star hotel, operated by the Mercure Hotels group, and 67,992 sq ft of retail space across 23 units where tenants include Marks & Spencer, The Alchemist bar and Grill on New York Street restaurant. Occupiers of City Tower also benefit from 456 car parking spaces and 200 cycle bays.
Tom Newman, Investment Manager at Schroder Real Estate, commented:
“We acquired City Tower for its compelling fundamentals I in terms of location, specification and the potential to drive value through asset management and refurbishment. We have now completed our first phase of refurbishment and delivered best-in-class office space which is attractive to a range of tenants. Hays is the latest tenant to commit to City Tower for the long term and there good interest in the remaining refurbished office space.
“City Tower is a long term hold for Schroders and we will continue to maximise the potential for the estate both within the buildings and in the wider realm. This is consistent with our our strategy to focus on winning cities and towns, meaning those with a competitive advantage in terms of employment, population growth, well developed infrastructure, and, crucially, places where people want to live and work..”
Colliers International and CBRE act as Leasing Adviser to Schroders. Having achieved £26 psf on recent open market lettings and re-gears, Schroders is quoting rents of between £24 and £30 psf for the refurbished office space, depending on the floor level.