Manchester’s iconic Great Northern Warehouse has been bought for a massive £71million by former Printworks owner Resolution Property.
Current owners, Capital and Regional, agreed terms for the sale today and will partly use proceeds to repay a £57million loan secured on the property.
The Deansgate Victorian landmark features an AMC Cinema, the Manchester 235 Casino and All Star Lanes bowling alley in what Robert Wolstenholme, Director at Resolution Property, calls a ‘strong regional asset’.
“This is as a result of some good letting activity, benefits from a healthy income stream from a diverse range of occupiers, including a number of interesting independent operators who are breathing new life into the property.” He said.
Resolution Property previously owned Manchester’s iconic Printworks before selling the complex last year for £93.9million.
“In line with Resolution’s strategy of enhancing value through creative asset management, it is exploring a number of opportunities for mixed-use refurbishment and development, to complement the existing line-up of strong retail and leisure brands already on site.” said Mr Wolstenholme.
The Grade 2 listed warehouse is only partly refurbished supplying the opportunity to renovate new units and increase the complex’s income.
Upon sale C&R is entitled to additional deferred consideration resulting from the installation and letting of the cinema complex within the facility.
Due to the the deferred consideration, the company expects the total cash sum receivable to be close to £72.5million – with the deal expected to be completed by the end of the month.
Hugh Scott-Barrett, Chief Executive of C &R, said: “The disposal of Great Northern Warehouse is a critical milestone in the delivery of the company’s strategy, as it results in the repayment of all the remaining on-balance sheet debt and further reduces the company’s see through net debt to value.
“It also facilitates further re-investment in our core UK Shopping Centre business as we continue to execute our strategy for growth.”
Image courtesy of Harry_nl via Flickr, with thanks.