A trio of Manchester developments are seeking funding partners as investors rush to commit schemes ahead of a forecast supply shortage in 2018/19.
M&G has appointed JLL to find a joint venture partner to redevelop Brazennose House into a 150,000 sq ft office with ground floor shops and restaurants. It is already in talks with Marshall CDP to form a jv for the £90m scheme.
Revcap and Worthington Properties are seeking £60m funding to kick-start 123-127 Deansgate, which has consent for a 125,600 sq ft development.
And Aberdeen Asset Management has appointed Colliers International to find a partner for 11 York Street, an 86,000 sq ft office project with an estimated gross development value of £50m.
CBRE director of national capital markets in Manchester Will Kennon said all three projects were well placed to take advantage of the supply shortage, but predicted only the “very best” developments would secure funding.
In a research note published last week, Peter Gallagher, director at Colliers International, wrote: “Although there is 1.3m sq ft of consented schemes, it is expected that lack of readiness/funding will result in only a limited race to speculatively bring space to the market.”
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