Manchester council eyes stake in Spinningfields

  Manchester city council is considering buying a stake in Allied London’s Spinningfields scheme in the city centre, in a bid to spark a new phase of development.   Allied London has proposed a sale-and-leaseback agreement by which it would sell to the council the freehold of the two remaining development sites on Hardman Street and Hardman Boulevard.   The investment could trigger the next phase of developments at Spinningfields, which could extend to as much as 600,000 sq ft of office and retail space.   A report is due to go before the council’s executive next Wednesday, proposing the investment.   Manchester city council leader Sir Richard Leese said: “Spinningfields has been phenomenally successful.   “We are looking at arrangements which would allow the next phase of the development to go ahead with investment by the council, but investment which we can get a return on.   “We need to make sure that developments like Spinningfields keep going so we have opportunities for local companies to grow and companies to come from outside.   “The future of Manchester depends on increasing the number of jobs here and getting Manchester People into those jobs.   “At a time of recession, when traditional finance sources are very difficult to secure, bodies like the council have to pick up the baton to keep the economy of the city going and to keep jobs coming.   “We are not interested in propping up the private sector. What we are interested in is supporting the long-term growth of the city. It’s about investment, not speculation.”   daniel.cunningham@estatesgazette.com