E-retailer The Hut Group is in advanced talks with MAG Property to pre-let 250,000 sq ft at Airport City, Manchester.
The move follows THG’s recent 51,000 sq ft lease at Airport City’s 4M and Voyager buildings on 10- and five-year leases.
The firm, which runs more than 150 online shopping websites including Zavvi, MyProtein and Glossybox, is understood to be looking to consolidate its offices and grow in a campus location. Its other locations include Chelford House in Northwich, Cheshire, where it took 12,000 sq ft in 2016.
THG is expected to sign a lease of at least 15 years with rent per sq ft expected to be in the low £20s.
THG has grown rapidly over the last few years, with revenues rising 47% in 2017 to £736m. In May it secured a £600m credit facility from a syndicate of banks including Barclays, HSBC and Santander.
Last year, Old Mutual Global Investors invested £125m in the company in a deal that valued the company at about £2.5bn.
The £1bn Airport City development [main pic] is a joint venture between Manchester Airports Group, Beijing Construction Engineering Group International and Greater Manchester Pension Fund.
It has plans to develop about 5m sq ft of commercial space in the next 10 to 15 years. MAG Property is understood to be submitting planning for the 250,000 sq ft first phase of its office development later this year.
MAG Property and THG declined to comment.
JLL and CBRE are the retained agents on Airport City. OBI Property advises The Hut Group.
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