A private investor, represented by international real estate advisor Savills, has brought to market the iconic Grade II listed building let to House of Fraser in Manchester for a guide price of £84.5 million, reflecting a net initial yield of 5.07%.

The landmark department store totals 387,595 sq ft (36,008 sq m) and is let to the leading retailer on a lease with 33 years unexpired at an annual rent of £4.36 million.  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.

Situated on a 1.64-acre (0.66-hectare site) fronting on to Deansgate, at the junction with both St Ann’s Street and King Street, the property occupies a prime retail position at the heart of Manchester city centre.  The high footfall retail, leisure and office hubs of  Spinningfields, Manchester Arndale, M&S and Selfridges are also within close proximity.

Oliver Foster, investment director at Savills, comments: “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.”