Following its £132m acquisition of City Tower in May this year, Schroders Property Investment Management has appointed CBRE’s Planning team to develop strategies for maximising the potential of the Manchester City Centre mixed-use asset.
CBRE has been appointed to assist Schroders in the preparation of a comprehensive strategy for the long-term management and enhancement of City Tower. The remit for this work seeks to develop strategies looking not just at this asset, but also at the wider surrounding area.
Stuart Robinson, Executive Director and Chairman of UK Planning at CBRE, commented; “The acquisition of City Tower represented a major investment by Schroders into Manchester City Centre and paves the way for significant value to be added to this landmark scheme. Rather than focus inwardly upon City Tower itself, Schroders is keen to work collaboratively with local businesses, landowners, the City Council and City Centre Management Company ‘CityCo’, to improve the wider environment and capitalise upon the exceptional location of the asset. We are currently reviewing a number of options to maximise the potential of this exciting and unique opportunity within the heart of Manchester.”
Immobilien Europa Direkt (IED), an investment group of Zurich Investment Foundation and managed by Schroders Property acquired a 25% interest in the property alongside Schroders Real Estate Investment Trust (SREIT) and Schroders Property Fund (SPF) for a total price of £132 million. The price reflected a headline net initial yield of 7%.