Infinity property fund and Vision Developments have completed the £6m purchase and leaseback of Lloyds’ TSB’s 53 King Street in central Manchester.
Infinity, which is in talks to buy a stake in Ken Knott’s Ask Developments, has bought the 43,000 sq ft building in its first joint venture with Vision.
The price paid reflects a net initial yield of 12%.
The two parties have an equal share in the property which is let to Lloyds TSB for two more years.
It is understood that the joint venture is considering either refurbishing the building or renewing Lloyds’ lease when it expires.
Stephen Cliff, managing director at Vision Developments, said: ‘The building was built for Lloyds TSB nearly 100 years ago and Lloyds has been in occupation ever since it was built.
‘Lloyds TSB has a lease which is shortly to come to an end, and we have already begun to evaluate how to maximise the building’s potential both in terms of aesthetics and uses.
‘However future plans for the building have not yet been finalised, and we intend to work closely with our current tenant.’
Infinity’s £100m property fund was set up in January 2008.