Patrizia Immobilien AG has instructed JLL to sell 90% of its interest in the £500m 20-acre First Street regeneration project in Manchester.
The German investor and asset manager is seeking around £50m for the stake in the partially-developed site.
Assets include a 173,600 sq ft office building, Number 8 First Street, which is being delivered in partnership with the Greater Manchester Pension Fund and is partially prelet to Gazprom.
It also includes 95,000 sq ft of leisure space let to occupiers including HOME − a film, art and theatre venue − Pizza Express and Sainsbury’s, along with a 700-space Q-Park car park and an outdoor events space.
Planning consent has been granted for a 26-storey PRS tower, comprising 624 flats, at the southern end of First Street.
Manchester City Council’s updated strategic framework for the site from 2015 also identifies the opportunity for up to 2.1m sq ft of offices at First Street Central.
Patrizia, which acquired the site through its subsidiary Patrizia UK from development partner Ask Real Estate in 2015, has already sold two of the completed developments.
The 180,000 sq ft office building, No 1 First Street, was sold to Standard Life Investments for £66m last year and the 208-bedroom Melia Innside hotel was sold for £30m to a privately-owned UK group.
The opportunity is expected to attract interest from UK institutional and overseas investors.
Earlier this year, Barings Real Estate Advisers announced that it had acquired and committed to speculatively develop Landmark Manchester, a 180,000 sq ft office building with a gross development value of around £100m.
Last year was a record year for overseas investment into Manchester offices, with £489m committed, according to Savills. Total investment volumes for Manchester offices in 2016 were £688m, up from £642m in 2015.
Patrizia will retain a 10% interest in the scheme.
All parties declined to comment.
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