Hermes Real Estate this week exchanged contracts with the Co-operative Group to form a partnership on the £800m NOMA scheme in Manchester.
The deal, as tipped by Estates Gazette (14 September, p49) will see the investment manager take on its most high-profile regional regeneration project so far.
Hermes will inject capital to aid development in the short term on the 4m sq ft project, with the 50/50 jv retaining ownership of the properties once built.
NOMA director David Pringle said: “We will refurbish several iconic listed buildings as well as creating outdoor spaces.”
Co-op’s deal with Hermes – which manages property investments on behalf of the BT Pension Scheme – follows Delancey and Landid pulling out of exclusive talks on the scheme in June 2013.
The jv is now expected to push the button on a retail and office refurbishment of the 100,000 sq ft vacant Hanover building.
Phase one of the scheme – the Co-op’s 328,000 sq ft head office known as One Angel Square – has now been completed and occupied under a lease expiring in 2038.
Deutsche Asset and Wealth Management and Gingko Tree Investment bought the building for £142m this year.
JLL acted for Hermes; Colliers International represented the Co-op.
chris.berkin@estatesgazette.com
