Patrizia Immobilien AG has entered into a joint venture together with Greater Manchester Property Venture Fund (GMPVF) to deliver a 173,600ft² (16,100m²) office building at First Street, Manchester. The 20-acre site has a gross development value of approximately £75m (€99m).
The seven-storey building has already been partially pre-let to Gazprom, which will occupy 39,570ft² (3,676m²) of space with a further option on 11,590ft² (1,076m²). Patrizia is development manager on the scheme while Carillion is building contractor, with delivery expected in 2017.
Patrizia acquired First Street, a mixed use scheme in central Manchester, in May 2015 and has been actively managing the site, along with local partner, Ask Developments. First Street already comprises a 180,000ft² (16,700m²) office building which is fully let, a 208-bed hotel, bars and restaurants, parking and substantial public space.
James Muir, managing director Patrizia UK & Ireland, commented: “Little more than six months have passed since taking control of First Street and we have been making great strides, with this latest phase a testament to our work on site. The transaction shows that demand is there from occupiers and that investors are keen to back vibrant schemes such as First Street. At the same time, it highlights Patrizia’s ability to partner with a UK pension fund, and how we are able to use our balance sheet to create opportunities for co-investing with institutional clients.”
Cllr K. Quinn, chair of GMPVF, said: “Following on from the practical completion of No 1 St. Peter‘s last year, we are pleased to commence another large city centre development at First Street, that will further support the economic development of Manchester and the wider North West”.
JLL advised Patrizia, while Bilfinger GVA acted for GMPVF.
