Insider Media Limtied

Who: Aerium, a fund management company based in Luxembourg.

Did what: Paid £183.5m.

To whom: Allied London.

Background: Aerium has bought the office building at 3 Hardman Street, Manchester, on behalf of its Glenn Arrow UK Property Fund. The deal is with landlord and developer Allied London. The net initial yield is said to be 6.25 per cent. The sale came as Manchester City Council announced plans to help Allied’s Spinningfields development by taking a stake. The council’s decision to buy the freehold of plots 1 and 2 Hardman

Square and 3 Hardman Boulevard could trigger up to 600,000 sq ft of development at the site on Deansgate.

What the market says: European investors like larger lot sizes, well-let schemes and helpful councils – so no surprise 3 Hardman Street got a buyer. Many more will follow, which makes it all the more surprising that Manchester City Council should feel the need to step in. Does Allied London really need the cash? And isn’t taking risk what being a developer is all about? The council’s justification is that development finance is hard to find. It certainly is for some iffy, edgy schemes by untried developers. But lenders will be queuing up to lend to Allied. The council said development had “stalled.” Apparently it never crossed its mind that it was only “stalled” because Allied preferred not to take risks. If many observers are wide-eyed, rival developers are hopping mad – especially if they’re sitting on some of the 500,000 sq ft of new un-let city centre space.

Most likely to be described as: Heavily subsidised.

Least likely to be described as: In no conceivable sense unwise/foolish.

Who: Prudential.

Did what: Paid £47m for the Stanley Green Retail Park in Cheadle Hulme.

To whom: Henderson Global Investors.

Background: Prupim, Prudential’s investment management arm, has bought the 91,500 sq ft retail park from Herald, the £1bn European property fund managed by Henderson Global Investors. It paid £47m, a net initial yield of 5.3 per cent. Gerald Eve and K&L Gates advised Henderson, and King Sturge, Tudor Toone and CMS Cameron McKenna acted for Prupim.

What the market says: Let’s not get carried away – the North West is not on the list of must-buy property hot spots. But it is providing investors with some interesting prospects. It appeals to the risk-averse investors, who see in retail, industrial and office sectors scope for steady growth and the limited prospect of growing supply. The city region also appeals to risk-takers, for whom anything outside London is an edgy adventure. London & Stamford Property’s £100m sale of the 291,500 sq ft Aintree retail park is likely to be the next to get away. These deals say something about retail: that dull, reliable providers of basic goods are still profitable. Confidence is growing to the extent that developers are preparing to revive plans. In March, Threadneedle Property Investments won permission for the redevelopment of Eccles Shopping Centre. Although the prosposal could come to nothing if Tesco proceeds with plans for a store at West One, developers are starting to feel in the mood for action.

Most likely to be described as: Shopping spree.

Least likely to be described as: Retail therapy.