US private equity firm Carlyle Group has beaten Manchester-based MCR Property Group to buy two phases of Argent’s Piccadilly Place in Manchester for £110m.
The deal comes three weeks after rival US investor GE Real Estate pulled out of negotiations to fund 320,000 sq ft of the 675,000 sq ft scheme.
Carlyle will buy the speculative 200,000 sq ft Three Piccadilly Place, which is scheduled for completion next year, and will forward-fund the 120,000 sq ft Four Piccadilly Place.
The Highways Agency and law firm Weightmans have taken almost 50,000 sq ft at Three Piccadilly Place, while negotiations are under way with the Government Office for the North West.
GE walked away from negotiations with Argent earlier this month after senior management pulled out.
Argent said GE’s decision was not a reflection on Manchester and instead blamed macro-European factors.
Piccadilly Place will become Carlyle’s second major investment in the UK regional office market.
It paid £150m for Abstract Land’s Colmore Plaza in Birmingham last November.
Argent’s sale of the scheme has prompted local speculation that Argent is commencing a structured exit from the Manchester market ahead of the completion of the 675,000 sq ft Piccadilly Place development.
GVA Grimley is advising Carlyle; Argent is unrepresented.
