Speculation is mounting that Allied Londons Spinningfields scheme has won Royal Bank of Scotlands (RBS) 40,000 sq m (430,000 sq ft) central Manchester office requirement.
The requirement – Manchesters biggest for a generation – comprises a 32,515 sq m (350,000 sq ft) headquarters building and a 7,430 sq m (80,000 sq ft) customer-services centre. The move will consolidates 23 Royal Bank and NatWest offices throughout the city into one site.
The banks board met earlier this week but no decision has been disclosed. In a statement the Royal Bank said: “RBS is seeking to consolidate all Manchester staff into two separate buildings. As yet we have not completed any deals.”
Other sites on the shortlist are understood to have included Town Centre Securities Piccadilly Basin, Icians Smithfield development, and the Co-Operative Insurance Societys car park site on Miller Street.
Amec/Crosby joint venture Ician has already conceded defeat. Icians Andrew Dewhurst said: “We understand that the Royal Bank of Scotland was impressed by Icians award-winning £50m scheme and recognise the Northern Quarter as a new focus for city centre commerce.
“Naturally we are disappointed at the outcome but that should not cloud the fact that the Northern Quarter was shortlisted by a major corporate, reflecting its new standing as key contender in the Manchester office market – a remarkable achievement when you consider its former image as a backwater of the city centre.”
Town Centre Securities has also conceded that its 32,515 sq m (350,000 sq ft) office development at Waterside, Piccadilly Basin, has been unsuccessful. A spokesman said: “Obviously we are disappointed but we feel bouyant and upbeat about coming so close. We did better than some might have expected this time last year and it gives us immense confidence to continue with office development on this site.”
The 245,000 sq m (2.64m sq ft) Spinningfields scheme on Deansgate includes122,780 sq m (1.32m sq ft) of new offices and is destined to become the next major focus for corporate lettings activity. Guardian Media Group is already close to a separate 7,430 sq m (80,000 sq ft) prelet.
Tony Bray, director at Dunlop Heywood Lorenz, said: “The RBS requirement will certainly change the Manchester office market as it is creating a new, bigger inner core. At present properties in Manchester of such are size are few and far between.
“The bank has 23 properties throughout Manchester, a number of which are subject to lease expiries and break options. However, despite the fact that they are subsequently vacating a number of these properties, this does not mean that the market will be flooded with second hand space.”
EGi News 29/06/01
