Manchester’s Boulton House acquired for £10.5m

Commercial property investment firm Palace Capital plc has acquired Boulton House in Manchester.

The company this morning (August 22) announced its purchase of the 75,000 sq ft office building, located on Chorlton Street, for just over £10.5m.

To support the deal, Palace secured a new debt facility of £6.022m with Santander.

Around 13,500 sq ft of office space at Boulton House is currently vacant, but Palace plans to carry out a limited refurbishment prior to letting the space.

Palace Capital’s chief executive, Neil Sinclair, said: “The building currently produces a net rental income of £625k per annum rising to £775k per annum when the current rent free periods expire.

“In our view, once we have completed the works and the vacant offices are let, we should receive a net yield of circa 8.5% and a return on equity in excess of 13%.”

He added: “Having regard to the medium term development potential we are delighted with this purchase.”

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