Countryside Properties is to buy NHS Estates’ Withington business park in south Manchester for a price thought to be close to £20m.
The Warrington-based developer is understood to have beaten rivals after a lengthy and controversial tendering process. Persimmon was the underbidder.
Part of the 17.8ha (43-acre) former hospital site in Withington has already secured planners’ backing for 25,550 sq m (275,027 sq ft) of commercial space and a 150-bed hotel. The remainder of the site will be developed for residential use.
It is understood that around 4ha (10 acres) at the Burton Road site has been excluded from the sale – a change from the original brief which has attracted fierce criticism from bidders.
The deal has been plagued by changes in market sentiment. Some big names expected to bid – including Taylor Woodrow and Bryant – decided not to participate.
One close observer said : “They are asking developers to take a lot of risk on the basis of little information, at a time when the market just isn’t right.”
Another commented : “If they’ve got a buyer at a good price after the way the rules were changed half way through, then they’ve done well.”
The Withington business park would be Countryside’s first big move into commercial development in the North West and comes as the firm broadens its interests.
Last month, EGi exclusively revealed that Countryside was in talks with SFX/Houston Securities about joining their bid to develop Liverpool’s 36-acre (14.6ha) Kings Waterfront site as a mixed-use scheme.
The development will be anchored by a stadium planned as Everton FC’s new home.
EGi News 06/12/01
