Gas supplier Gazprom Energy has signed a prelet for 40,000 sq ft at Ask Development’s First Street scheme in Manchester.
As tipped by Estates Gazette in August, the deal enables work to begin on the next 220,000 sq ft phase of the £550m project.
Gazprom, currently based in Orchard Street’s Bauhaus building, has signed a 15-year lease with a break at 10 years, at a rent of just under £25 per sq ft. It hopes to take occupation in 2017.
Gazprom will also have an option to take a further 11,500 sq ft in the building, in which it will take the fifth and sixth floors. Construction is expected to commence in October, with completion in March 2017.
In total, the building will offer circa 157,000 sq ft of grade-A offices over six upper floors with a further 14,000 sq ft of ground-floor retail/leisure space.
It will be the third significant deal at Ask’s First Street this year, following a 60,000 sq ft letting to Trader Media and a 65,000 sq ft letting to Ford Credit.
Gazprom considered several options in Manchester, including One New Bailey in Salford, a development by Muse, Legal & General and the HCA. It also shortlisted Benson Elliot’s 55 Princess Street.
Savills and CBRE are acting for Ask on First Street; CBRE is advising Gazprom.
