House of Fraser buliding given 84.5 million pounds price tag

Manchester’s iconic Grade II listed building housed by House of Fraser has been listed with a guide price of 84.5 million pounds by a private investor, represented by real estate advisor Savills.

The landmark department store sits on a 1.64-acre site fronting Deansgate, totalling 387,595 square foot and is let to the retailer on a lease with 33 years unexpired at an annual rent of 4.36 million pounds. It has long been a part of Manchester’s history and comprises two separate buildings linked via basement and footbridges, the larger of which dates back to the 1930s.

The high footfall retail, leisure and office hubs of Spinningfields, Manchester Arndale, Marks and Spencer and Selfridges all within close proximity, has led to the guide price of 84.5 million pounds, which reflects a net initial yield of 5.07 percent.

Savills investment director, Oliver Foster, said: “This is a rare opportunity to acquire a prime landmark department store investment in Manchester which, as a city, is recognised on a global scale for its retail offer.

“We expect the long unexpired lease term to House of Fraser and attractive yield to generate high levels of interest among investors based in both the UK and overseas.”