PATRIZIA Immobilien AG announces the acquisition of the 20-acre (approx. 8,100 m²) “First Street” site in Manchester through its subsidiary PATRIZIA UK. The site is partially developed with an 180,000 ft2 (approx. 16,722 m²) office building, known as “No. 1 First Street”.
It is a Grade A BREEAM ‘Excellent’ building with a Weighted Average Lease Term of nine years and is let to high quality occupiers such as Ford, Auto Trader and Jacobs Engineering. The site has capacity for the development of up to 1 million ft² (around 92,903 m²) of office space and approx. 500 new apartments.
PATRIZIA intends to develop and own the apartments specifically as a ‘build-to-let’ property, marking the Company’s maiden investment in the UK Private Rental Sector (‘PRS’). This development will form the foundation of PATRIZIA’s plans for a dedicated PRS fund, building on the Company’s significant European track record in the sector, which already includes the management of 80,000 apartments worth €7 bln.
Assets recently completed at the site include a 208-bed Melia Innside hotel, nine bar and restaurant units, and 700 carpark spaces. PATRIZIA will develop offices and residential on the remainder of the site over the next 5-7 years. The seller was a local private property company. Completion of the transaction is expected in Q2 2015.