Manchester council has decided to pursue the purchase of the G-Mex centre from minority shareholders Aviva and nine local councils in Greater Manchester.
Negotiations on price have yet to begin, but estimates put the value of G-Mex at anywhere between £10m and £20m.
Funding for the purchase will be met by a combination of the council’s war chest and a loan, with future conference revenues going directly to the Town Hall.
Speaking to EGi News, Sir Howard said: “Manchester’s share of the conference market accounts for £80m, which is reasonable. But it should be increased.
“As the owner of G-Mex we can be a long term player, continuing to drive performance and create a marketing brand around Manchester’s conferencing quarter.”
Sir Howard said he believes G-Mex can be linked with the nearby Midland and Radisson hotels, as well as the Bridgewater Hall, to create a “world class” conferencing hub.
He added: “I think the purchase is an important way of enhancing G-Mex as the North West’s premier conference location.”
Aviva currently owns 48% or G-Mex Ltd. The remaining 52% is owned by Modesole, a company owned by Greater Manchester’s ten local councils.
The council is seeking to buy out both Aviva and Modesole to take full control of G-Mex, including the adjacent Manchester International Conference Centre.
In total, G-Mex contains around 135,000 sq ft of exhibition space as well as offices and banqueting facilities.
G-Mex recently hosted the Sustainable Communities Summit and the BCSC Conference, and will next year host the Labour Party Conference.
The building, originally Manchester’s Victorian Central Station, was redeveloped as a conference venue in the mid-1980s.
References: EGi News 13/04/05
