Manchester Arena sold in £436m property deal

Manchester Arena has been bought as part of a £436m deal.

Secure Income REIT Plc, a long-term income real estate investment trust, said it has exchanged contracts with Mansford LLP to purchase two portfolios.

Director Leslau said he is “hugely proud” to have bought the venue, operated by US entertainment specialist SMG.

It was acquired as part of a £224 million package of properties from investment group Mansford. The portfolio also includes pubs, hotels and London events space The Brewery, Chiswell Street.

Secure Income has also snapped up 59 hotels let to Travelodge for £212 million.

They were bought from a consortium of investors including Goldman Sachs.

The arena package includes the 21,000-capacity venue, the 1,000-space multi-storey car park and 160,000 sq ft of office and leisure space.

Mansford LLP, a real estate investment firm, bought the arena for £82million in 2013.

The arena produces an annual income of £5.75m from its one million visitors each year and is let for 27 years to venue management company SMG.

Leslau said the new buildings have “a group of very robust tenants” and added that there is plenty of scope for rental growth.

To partly fund the deals, Secure Income has proposed a share placing to raise £315.5 million. Stifel is advising.

In a statement to the market, Martin Moore, non-executive chairman of Secure Income REIT Plc, said the acquisitions were the next chapter in the group’s growth.

“We are pleased to announce the proposed purchase of two separate portfolios at a total cost of £436 million,” he said.

The deal will reportedly go to Secure Income REIT’s AGM on March 27 for final approval ahead of completion in July.

TNT Business

Photo Credit: Matthew Hartley


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