Agents pick the most significant Deals (for the six months to the end of February 2016)
First Street, Manchester
Type of deal Joint venture development
Vendor Patrizia
Purchaser Greater Manchester Property Venture Fund (GMPVF)
Size 174,000 sq ft
Price Undisclosed
Yield Undisclosed
Chosen by Mark Rawstron, head of Bilfinger GVA (Manchester office)
GMPVF is an innovative development fund with a rolling allocation of £400m to invest in North West development and regeneration projects. It also forms part of the largest local authority pension fund in the UK and is a unique vehicle not replicated on this scale elsewhere. To date, it has been quietly amassing an impressive development portfolio. Now, this latest acquisition, by way of a joint venture with Patrizia, will see it use its 100% development funding capacity to develop an iconic 174,000 sq ft grade-A office building, which is already 23% pre-let to Gazprom. This is an important gateway site into the city which will create a high-quality frontage development, effectively completing the first phase and enabling the rest of the site to fulfil its potential for further commercial and mixed uses. I believe the deal also demonstrates GMPVF’s ability to form innovative structures in its continued support for the regeneration of the city.
One New Bailey, Manchester
Type of deal Pre-letting
Developer Muse Developments
Tenant Freshfields Bruckhaus Deringer
Landlord Legal & General
Size 80,000 sq ft (total building 125,000 sq ft)
Lease terms Undisclosed
Chosen by Mark Canning, director, Canning O’Neill
While it grieves me to highlight an office transaction in Manchester that Canning O’Neill has not been involved in, the deal agreed between Muse and Freshfields Bruckhaus Deringer at One New Bailey could be a real game changer for the city. For a legal firm the size and stature of Freshfields to acquire 80,000 sq ft outside London – and to choose Manchester as the commercial centre in which to do it – is a first. The details of the deal have remained confidential, but it is not the financial information or the precise lease terms in this case that are important. What is clear is that this deal is indicative of a growing trend for a wide variety of companies to identify Manchester, and the wider conurbation, as the solution for both office expansion, “north-shoring”, as well as wholesale relocation. If this trend continues – which looks very likely – it is set to transform the city’s office market.
London Road Fire Station, Manchester
Type of deal Development opportunity sale
Vendor Britannia Hotels
Investor Allied London
Size Circa 125,000 sq ft
Price Guide price £10m
Chosen by Andrew Hamilton, director, Deloitte Real Estate (North West)
The iconic fire station building is one of the first things people see as they enter the city centre, especially from the Fairfield Street entrance at Piccadilly station. However, its ongoing purpose has been cause for deep concern, as the building has lain vacant for some 30 years, with development failing through a couple of property cycles, all of which has not been reflecting well on the city. I think Allied London’s acquisition of the property has unlocked the potential for a new area to be improved. Following a number of significant renewal schemes in the city, most notably the Spinningfields business district and, more recently, the redevelopment of the Old Granada Studios as St John’s neighbourhood, Allied London’s experience brings with it some exciting prospects for the building’s future use. The deal is also significant in terms of the long-term vision for the mixed-use Mayfield Quarter, with this landmark building contributing to its ongoing development strategy.
Bruntwood on track
Bruntwood was chosen by Network Rail and Manchester City Council as preferred partner to develop a 500,000 sq ft mixed-use scheme alongside Oxford Road station.
Realty brews PRS plan
Realty Estates unveiled plans for PRS flats, two hotels and office space at its £400m UX Manchester scheme on the former Boddingtons site next to Manchester Arena.
Hill joins CBRE team
CBRE appointed former RBS banker Victoria Hill to expand its capital advisory team in Manchester.
House prices set to boom
Research by JLL predicted house prices in Manchester would increase by 26.4% over the next five years.
Double boost for hotels
Two planning consents awarded in January gave a boost to Manchester’s hotel market – easyHotel’s Bradley House scheme in the Northern Quarter and Urban & Civic’s mixed scheme in the city centre.
Portland Street upgrade
Aviva Investors embarked on a major office refurbishment scheme at 11 Portland Street.
Argent departure
Argent announced it was giving up its role as development manager of the £1bn Airport City project. The jv behind the 5m sq ft scheme subsequently began creating a new in-house team.
EG gauges the trials and tribulations of the Manchester property market
