Agents pick most significant deals to end of May
4 Piccadilly Place, Manchester
Type of deal Leasing
Landlord Carlyle Group
Tenant Barclays Bank
Size 81,603 sq ft
Terms 5 years at an undisclosed rent
Chosen by Richard Lowe, associate director, Savills (Manchester)
It is the size of this transaction that makes it stand out, as it is the first letting of over 80,000 sq ft in Manchester city centre since 2010. In Q3 2013 we began to see increasing demand for large amounts of grade-A office space, eventually resulting in this deal and that of Trader Media at First Street. With other large requirements in the market, and a number of transactions due to complete shortly, we expect available large-scale grade-A supply to be dramatically eroded. This reduction in options is best highlighted by Towergate Insurance, which is understood to be in legals at 3 Hardman Square – taking space at £30 per sq ft when it initially searched for space at circa £25. Lettings such as Barclays at 4 Piccadilly Place will lead to further rental growth and a reduction in rental incentives. This will enhance the case for developers and funds to consider speculative building in Manchester city centre.
First Street, Manchester
Type of deal Leasing
Developer ASK Developments
Tenant Trader Media
Size 60,000 sq ft
Terms Undisclosed, but rent above the £23 per sq ft mark
Chosen by John Ogden, managing director, CBRE, North West
One of the most significant deals of 2014 is the letting of 60,000 sq ft at ASK Developments’ First Street to Trader Media. It is important in many ways, not least because Trader Media is a new inward investor to Manchester city centre and, having been based near Haydock, it was initially considering locations closer to its current offices. The rationale behind its decision to locate in Manchester lies in the infrastructure it offers, its amenities for employees and the fact that the city is seen as a place to attract and retain the best staff, particularly in the growing TMT sector. This deal really sets the tone for future inward investment in the TMT market and is an important letting for First Street itself. I believe it heralds a new wave of inward investment into the city centre and is testament to the strong demographics that Manchester can offer to the TMT sector.
Alderley park
Vendor AstraZeneca
Purchaser Manchester Science Parks, a partnership between Bruntwood, Manchester and Salford city councils, Cheshire East council and Manchester’s two universities
Size 400 acres
Value Undisclosed
Chosen by Adam White, Associate director (planning & development), JLL
My top deal is the sale of Alderley Park, one of the UK’s largest and most well-established centres for life sciences R&D. When owner AstraZeneca decided to relocate to the South East, the preservation of the site’s legacy became the number one objective of the disposal process. This made it very different from a typical freehold sale of development land. From the outset, it was focused on a very select group of potential buyers and so progressed almost immediately to a shortlist. The deal completed well ahead of schedule, in just 10 months, which reflects both an improving market and the rarity of such an opportunity. The msp bid provided the most sustainable solution for Alderley Park as it would preserve existing facilities and provide new employment opportunities after AstraZeneca’s departure. Safeguarding the future of Alderley Park in that way was essential for the future of the North West’s knowledge economy and this deal achieved that.
Going up
Zara fashions larger store
Fashion chain Zara announced plans for an enlarged store at Grosvenor’s Liverpool One scheme – creating a regional flagship of just over 27,000 sq ft.
Partners agree Noma plans
Hermes Real Estate signed a 50/50 partnership agreement with the Co-operative Group to drive forward its £800m plans for the NOMA development in Manchester, subsequently unveiling second phase plans for a 250,000 sq ft office-led scheme.
Office take-up soars
Around 150,000 sq ft of office requirements were launched in Warrington including searches by Hewlett Packard, the Sellafield project joint venture and O2. These followed Ombudsman Services’ leasing of 3300 Daresbury Park.
Muse secures city funding
Muse Developments secured a total of £6.2m from two sources to help kickstart its plans for City Place, Chester’s new central business district.
Liverpool’s largest leasing
Liverpool witnessed its largest office leasing to date in 2014 when insurance firm Mercer secured 22,400 sq ft at English Cities Fund’s 4 St Paul’s Square. ECF also received planning consent for its One New Bailey scheme in Salford.
Going down
Revaluation hits hard
A JLL survey revealed the postponement of the business rates revaluation was hitting retailers in the North West particularly hard – along with those in the East of England and the Midlands – with 55% paying more than they should be.
EG gauges the trials and tribulations of the Yorkshire property market
