May 22, 2015
Nick MontgomeryHead of UK Investment
Ian MasonFund Manager, HUT
and WELPUT
Neil MeredithHead of Business Space
James LassFund Manager, SPF
Jessica BerneyHead of Retail
Harry PickeringInvestment Manager
Henry CartwrightInvestment Manager
Nick BarkerInvestment Manager and
Alternatives
Tom NewmanInvestment Manager, Offices and Industrial
Lucy LilleyInvestment Manager
Support
Kerri Luxford Jade Stanley
Marie Holgersen
Andrew MacDonald
Head of Property Finance
Clara WestlakeFund Analyst
New graduate
Jones Lang LaSalle Asset management,
industrial
Research Rose Magee
Schroders’ UK Investment team
Acquiring City Tower • Completed June 12th 2014
• £132million deal
• 615,000 sq ft in total, comprising: – 348,00 sq ft - Office– 185-bedroom - Hotel – 75,000 sq ft - Retail
• Vacancy rates:– Offices - 12% vacancy – Retail - now fully occupied
• Rental: – Average passing rental on offices of £17.11psf (including
podium space)– Quoting £20psf + on the tower space with lots of interest
The OpportunityWhy Manchester?• Low void rate in the City• Healthiest environment for rental
growth (compared to other regional commercial centres)
• Headline rents anticipated to reach £32.50psf by end of 2014
Why City Tower?• The highest office space outside of
London – USP• Opportunity to further drive
performance (lettings, refurbishment, re-gears asset management)
• Opportunity to reposition Piccadilly Gardens
Proactive Asset ManagementAsset management strategy:
• Refurbishment of vacant floors, reception and ‘lobby’ area
• Potential to bring more retail into that area
• Longer term ambition to enhance the retail offering with potentially some more A3 such as is seen on New York Street
What’s next for Schroders?
Funds of £20m plus available
An eye on investment in both Manchester and other key locations.
All City markets are looked at with an eye on an ‘occupational story’
Leeds and Birmingham of interest for office schemes
Looking at core assets primarily
Questions?