Manchester City Council has overruled George Osborne’s decision to invest a £4m grant for a tech incubator at the Co-operative Group and Hermes’ NOMA project.
Federation House, on the southern edge of the 4m sq ft development in Manchester city centre, was named in the March 2015 Budget as the chosen location for the tech hub.
The 87,500 sq ft eight-storey block was set to house a start-up incubator project led by Doug Ward’s SpacePortX. It would have been the first prelet on the scheme.
However, the council has now decided to reconsider the location, paving the way for other developments in the city to land the government-backed prelet.
Sir Richard Leese, leader of the council, said: “Funding remains in place to support a tech incubator and we are currently reviewing the delivery and partnership arrangements through a new private sector board.”
While NOMA could yet seal a deal for the requirement, it is now talking to other potential occupiers about Federation House.
Alternative locations for the tech incubator are likely to include Bruntwood and Select Property Group’s Circle Square neighbourhood, which has been marketed as a “new community for business, science and
innovation”.
The 2.2m sq ft scheme on the Oxford Road Corridor is an important part of the council’s strategic plan to boost the city’s knowledge economy.
Another possible location is Allied London’s St John’s neighbourhood, where the council has helped draw up a 25-acre masterplan including contemporary workspaces aimed at creative industries, start-ups and collaborative working.
SpacePortX and NOMA declined to comment.
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