Anchorage investor set for good return
A London investor's £35m gamble on Salford's Anchorage office complex could be about to pay off.
Cording Real Estate Group, the London-based real estate investment and asset management firm, has launched the first phase of offices at Anchorage, the landmark office complex on the waterside at Salford Quays.
Cording bought the 220,000 sq ft block in August 2015 paying a reported £35m, as part of a joint venture with HIG Capital.
But today, with vacancy rate of Salford offices at a low of just 4%, they are relaunching the block after a refurbishment.
They enter the market when demand for office space in Salford is running at an all time high.
Current occupiers in the four buildings include Bupa, Morgan Sindall, Muse Developments, QA Consulting Services and various government departments.
The first space to become available is the top two floors, totalling, 25,000 sq ft, which have been refurbished to a high standard, including new metal raised access floors, metal suspended ceilings, new VRF mechanical ventilation and LED lighting.
The refurbishment has achieved a gold sustainability rating and produced future cost savings of 15% for energy and 20% in annual carbon reduction.Cording plans a comprehensive upgrade of the large atrium and external areas this summer and to upgrade and release further office space over the next 18 months, including 60,000 sq ft occupied by Bupa, which is moving to its new headquarters nearby in 2018.
The floors are being offered by joint letting agents, JLL and Edwards & Co, for a rent of £20 a sq ft. This compares with an average of £14.50 a sq ft when the property was bought in 2015.
Peter Dove, head of asset management and property management at Cording, said: "The relaunch of this landmark development and the capital we are investing reflect our confidence in Manchester and Salford Quays and our ability to achieve excellent sustainability goals.
"This new space provides unrivalled value for money at a discount of 30% to the city centre and for its high specification and waterside views, transport links and car parking".
Headquartered in London, Cording Real Estate Group is an ownermanaged Northern European real estate business, which provides fully integrated management services.
It currently has around €2.5bn management mandates.
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by David Thame