LONDON (ShareCast) - (ShareCast News) - Helical announced on Tuesday that it has completed the acquisition of Trinity Court, a 47,500 sq ft office building in Manchester City Centre, for £12.9m.
The London-listed firm said the acquisition from Ardstone Capital reflected a net initial yield of 9.25%.

It would be the fourth building in Helical's Manchester portfolio, as the board said it looked to utilise its "on the ground experience" and successful track record to take advantage of the supply-demand imbalance for well-located Grade A office space in the city's centre.

Located on John Dalton Street between Spinningfields and Manchester's historic centre, Helical said Trinity Court is across seven floors and was originally developed in 1992 behind a 19th century façade.

The office space was currently 100% let to Squire Patton Boggs, with one year remaining on the lease.

Following the tenant's vacation, Helical would undertake a significant refurbishment and extension programme to deliver "institutional quality modern office space", which the board said would meet the growing demand in central Manchester by an increasingly diverse mix of occupiers.

The building also included two small retail units totalling around 4,000 square feet, let until 2018, and Helical would undertake some small refurbishment work which would deliver "attractive" annual rental uplift on completion.

"This off-market transaction further complements our existing portfolio in Manchester, where occupier demand for well-located, good-quality assets in the centre remains strong," said Helical asset management executive Will Parry.

"The supply of Grade-A space is currently near an all-time low and there is a limited development pipeline, so Trinity Square represents an exciting proposition for us.

"Capitalising on these positive market dynamics, the asset is in an area that is undergoing significant transformation and offers attractive reversionary potential following the capital expenditure programme, as rents in the area start to reflect the quality of local occupiers."

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