Manchester Airports Group has selected a jv that includes Beijing Construction Engineering Group to deliver its £800m Airport City development.
The jv, which also includes Carillion and the Greater Manchester Pension Fund, has selected Argent to manage the scheme’s development.
The UK firms had been selected as preferred partners in April, but the controversial involvement of BCEG – backed by the Industrial and Commercial Bank of China and originally partnering with rival bidder Ask Real Estate – was not made clear until July.
Airport City will be the core element of the enterprise zone surrounding the airport, aimed at attracting international business.
Outline permission for the 5m sq ft office-led scheme was secured in early 2013, with chancellor George Osborne announcing the Chinese involvement in Beijing yesterday.
Ask Real Estate sought legal advice over the summer after MAG announced that Ask was out of the running for the scheme, while talks continued with BCEG – with which Ask had an exclusivity agreement.
Ask Founder Ken Knott stepped down shortly afterwards, although his move is understood to have been unrelated to the dispute.
CBRE and Eversheds advised MAG on its search for jv partners.
MAG chief executive Charlie Cornish said the inclusion of BCEG was “significant” as it sought to forge closer ties with the Far East.
He said: “With GMPF on board, greater Manchester is investing in the future of the North West, and Carillion brings sector-leading experience in project finance, delivery and sustainability, both in the UK and internationally.
“In Argent, we have one of the most renowned developers in its field and by working together as a partnership, we are well positioned to deliver the UK’s first Airport City.”
BCEG managing director Xing Yan said: “To be included in such an interesting and unique development is a real honour.
“We see our involvement in Airport City as an extension of the memorandum of understanding between China and the UK, where we have been looking to further explore joint infrastructure opportunities for some time.”
chris.berkin@estatesgazette.com
