An investment company bought Phones 4u Arena, based in Manchester, today for £82.1m. Mansford Real Estate is the European private real-estate investment firm that bought it from the partnership of Patron Capital and Development Securities. The firm is the owner of Swinton Shopping Centre, located in Salford. Patron Capital together with Development Securities acquired the Manchester Evening News Arena, the former name for the Phones 4u Arena, for £62.2m in 2010.
The partnership was a 70/30 joint venture where Development Securities owned the minority stake. They acted as the asset managers for the property. They undertook plenty of initiative to improve the capital value and increase the rental income.
The measures included renewing SMG Europe operator lease, taking measures for increasing revenue from advertising and refurbishing office space that lay vacant in the complex. Their latest move was to sign the deal for sponsorship with Manchester Arena for 5 years.
This represents the biggest indoor concert arenas within Europe. It has the capacity to accommodate 21,000 people. It witnesses more than 1.5million paying-visitors annually. It has seen the acts and performances from the people the likes of U2, Madonna, JayZ, Lady Gaga, Noel Gallagher and his High Flying Birds, The Rolling Stones, Beyoncé, Fleetwood Mac and Pavarotti. Peter Kay, the Bolton comedian also performed here in the record breaking 2010 to 2011 residency.
The complex features a multi-storey car parking lot and office space covering over 128,000 square feet. The Development Securities chief executive Michael Marx praised the Phones 4u Arena saying that enhanced strategies and asset management increased the value.
He also said that the sale of the Arena was in line with their business plan to sale it three years after acquisition. The deal strengthened the cash reserves a lot. This followed the earlier one, which brought in £12.1 at Paddington Central and the sale of their holding of residential land at Broughton, which brought in £11.4million in cash.