Aeroworks, Manchester

Pitalia Real Estate completed its first deal following the acquisition of the Aeroworks building.

Aeroworks – a former aircraft factory re-designed by Stephenson Studio architects – is home to FTSE 250 online travel specialist, On the Beach.

OTB became the sole occupier of the 35,000 sq ft building on Adair Street in Manchester’s Ancoats district in 2018 on a ten-year lease.

Pitalia Real Estate, which was launched in March this year by former JLL North West chairman, David Lathwood, has acquired the building from privately owned propco, Epsilon. The deal represents a yield of 5.25%.

Located close to Piccadilly train station, next to the site of Capital & Centric’s forthcoming Leonardo Hotel and within the council’s Portugal Street East regeneration zone, Aeroworks underwent a multimillion-pound refit ahead of OTB’s move. This saw the creation of a workspace that includes a 250-seat auditorium, beach bar and library.  

David Lathwood, CEO of Pitalia Real Estate, said: “The Aeroworks is a fantastic asset that’s located in a part of the city centre we expect to thrive post-lockdown. The dynamics in Ancoats, with its large population of young professionals, renowned independent food scene and night time economy and proximity to major transport hubs are hard to beat. 

“This represents our first investment purchase with long-term opportunities to add value to a unique building with historical character and already a best in class fit out. We see the future of office accommodation being about large, collaborative spaces for when teams need to come together, and this is what Aeroworks provides.”

Pitalia Real Estate is a part of the Pitalia Group, which is a private investment company founded by entrepreneur Anil Pitalia.