Agents pick the most significant Deals (for the SIX MONTHS TO END OF October)
XYZ, Spinningfields, Manchester
Type of deal Leasing
Developer Allied London
Tenant Shoosmiths
Size 32,000 sq ft
Terms Rent £28 per sq ft, 10-year lease.
Chosen by Neil Mort, director, office agency, CBRE
I have chosen to highlight Shoosmiths’ agreement to lease space in Allied London’s XYZ at Spinningfields. This particular office building is the standout performer, namely because of Allied London’s belief that a building can offer a different way of working compared with other new buildings.
We are seeing a growing trend for law firms and other professional practices’ willingness to acquire unconventional office space, which is marketed as being “inspirational” and “motivational”, and I believe this is now confirmed with the lease to Shoosmiths, being the largest letting of its kind in an unconventional new-build office.
With completion expected next summer, Allied has already announced 109,000 sq ft of lettings. In addition to Shoosmiths, there have been lettings to National Computing Centre and Global Radio, representing a move away from the type of occupiers that have been attracted to Spinningfields to date.
University Way, Orion Park, Crewe
Type of deal Disposal
Vendor Black & White Developments
Purchaser Quasar Real Estates (new jv and part of Jolivet Group)
Size 36,000 sq ft
Price £2.5m-plus
Yield circa 7%
Chosen by Matthew Pochin, director, Legat Owen
This deal is significant as it marks a continuing early shift back towards speculative development in the region. Black & White has shown itself to be ahead of the curve as this is its second speculatively built development in 18 months at Orion Park in Crewe, which is also home to some bluechip occupiers.
This forward-thinking approach is not, however, universal and many developers are still taking a more cautious, perhaps nervous, approach to speculative build. This deal, following on from Black & White’s lettings success, shows it is those developers that take a leap of faith that are being rewarded.
While the scheme highlights returning speculative development activity, it also underlines the strength of demand in the South Cheshire occupier market. The development achieved headline rental values for Crewe, with an average rate approximately £5.75 per sq ft. Its last remaining unit is close to going under offer, which will take it to 100% occupancy.
The St Michael’s development, Bootle Street, Manchester
Type of deal Investment
Developer Jackson’s Row Development Company and Manchester city council
Investors Rowsley and Beijing Construction Engineering Group
Size 1.8-acre development site
Value £150m
Chosen by Leo Nicholson, assistant director, Deloitte Real Estate
The Jackson’s Row Development Company – comprising former footballers Gary Neville and Ryan Giggs and developer Brendan Flood – and Manchester city council, have joined with Rowsley and BCEG to sign a funding agreement to develop St Michael’s, between Jackson’s Row, Bootle Street and Southmill Street.
The development is expected to regenerate a key, yet relatively untouched, area of the city centre and initial plans include a high-end international hotel, flats, offices and significant public realm.
I see this deal as an excellent example of how foreign investment is enabling developers to transform and regenerate iconic areas of Manchester city centre. The commitment from Rowsley and BCEG also provides further proof of Manchester’s standing in the global marketplace and the city’s growing attraction to international investors. As it continues to attract interest on such a global scale, I think we can expect more deals of this kind to appear.
People, politics and peculiarities
More power to them
There has been much talk of the northern powerhouse in political circles but the region is already embracing the concept in an altogether different way. Off the Cumbrian coast, Denmark-headquartered DONG Energy has just pledged to construct what it says will be the world’s biggest offshore wind farm. And in Hyde, Greater Manchester, United Utilities has started to develop a huge floating solar farm, its 12,000 panels making it the second-largest facility in the world after a scheme in Japan.
An address fit for a star
Fancy an office address in Hollywood? Canning O’Neill is offering just such an opportunity at MediaCity in Salford Quays. Amerdale’s recent remodelling of a 9,500 sq ft building bears the famous name. It lies within the MediaCity boundary, says the agent, and lends itself to studio space as well as offices.
Manchester’s Chinese connections
Away from all the razzmatazz and selfies at Manchester City football ground that surrounded Chinese president Xi Jinping’s recent visit, there was another Anglo-Chinese bonding taking place in Greater Manchester. Salford-based Manchester & Cheshire Construction signed an agreement with Jinstar to buy sites for residential development.
Blackpool gets counting
The bright lights of Blackpool have been masking a dark problem of overcrowded and poor quality private rented housing. In tackling it the local authority encountered a further problem in a lack of records about how many houses were involved. It relied on good old-fashioned detective work – pounding the streets and counting doorbells and rubbish bins. Now it is sweeping up such properties – some via CPOs – for redevelopment.
Bishop to JLL
JLL managed to lure one of the North West’s best known property figures – Ken Bishop – to its doors. During his time at DTZ, now part of Cushman & Wakefield, he chalked up more than 1m sq ft of prelets and leasings at Spinningfields. Hence, JLL’s lead director David Lathwood was keen to welcome his “vast experience”.
Legat and Lamont get together
Legat Owen and Lamont Commercial agreed to merge their companies in the summer. Peter Johnston, head of the new firm, said it meant they would maintain their independence, strengthen their core business, and broaden their client base.
Urban & Civic in Manc regen
Urban & Civic submitted an application to Manchester city council for a 148-bed hotel, residential and retail scheme on a 1-acre site at Princess Street and Whitworth Street in the city.
PM announces Chinese cluster
David Cameron announced plans for a £130m development of two office buildings at Airport City Manchester to be reserved for Chinese companies.
Liverpool mall up for sale
InfraRed Capital Partners was planning to bring Liverpool’s 535,000 sq ft St Johns Shopping Centre to the market for an offer price of £140m. Cushman & Wakefield was appointed to market the asset.
Granada plans get green light
Manchester planners approved Allied London’s redevelopment of the former Granada Studios into a mixed-use scheme.
Facelift planned for Crewe
Cheshire East council launched its search for a development partner to work on all or part of the redevelopment of the Royal Arcade site in Crewe town centre.
Blackpool scheme to go ahead
Cassidy + Ashton secured consent for a mixed-use urban extension at Whyndyke Farm on the outskirts of Blackpool.
QT’s Northern warning
Industry leaders at EG’s Manchester Question Time panned the idea of tax breaks for companies moving north and warned the northern powerhouse concept was becoming too Manchester-centric.
