Investec鈥檚 UK value-add real estate equity strategy has acquired a 47,000sqft office building in Manchester.
Investec Realis, launched last year, has acquired the Citygate building and will work with XLB, which will be responsible for asset management and sourcing future acquisitions.
The building, which was refurbished in 2016, currently has a 90% occupancy rate.
Realis and XLB plan to modernise the property, focusing on sustainability, including amenity improvements and common-area refurbishments.
The Citygate building is Realis鈥檚 second acquisition, both of which are regional offices.
Tom Punch, real estate equity specialist at Investec, said: 鈥淩ecent 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.
鈥淭his 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.鈥�
Stephen Wormald, partner at XLB, said: 鈥淗aving established a strong track record in Manchester, we are excited to partner with Investec Realis to deliver our shared vision for Citygate.
鈥淲ith the prime core enjoying the lion鈥檚 share of the take up and rental growth in recent years, the building is perfectly situated to benefit from these structural tailwinds.鈥�
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