Confidential's property roundup comes via Adam Robson, Director at AKM Property Consultants
MANCHESTER's property market shows no signs of slowing down as more buildings go up for sale, new developments progress across all sectors, alongside more positive planning news from the Government.
Plans for an Ian Simpson-designed 42-storey residential tower by Mancunian Way have been approved...
The appetite for Grade A investments continues with the 100,000 sq ft 40 Spring Gardens, the latest building to be put up for sale by Impax Asset Management. At £60 million this represents a net initial yield of 5.27% having bought the building in 2010 for £45 million from Langtree founder Bill Ainscough.
Following the recent purchase of 101 Barbirolli Square by AEW, 100 Barbirolli Square, home of Addleshaw Goddard and Ernst & Young, is up for sale at £52 million with leases expiring in early/mid 2017, providing an ideal refurbishment opportunity for a purchaser should the tenants choose not to renew their leases.
In addition, Clarence House on Clarence Street is also available at £6.5 million which, if purchased at this price, would represent a net initial yield of 6%.
Commercial HouseBruntwood have also been on the acquisition trail having exchanged contracts to purchase the 66,249 sq ft Commercial Union House in Albert Square from Aviva. This represents their most recent purchase in the city centre having previously sold off a number of high profile buildings including City Tower, Overseas House and Elliot House.
Northern Quarter's Jewel House - currently home to Dough pizza restaurant - has also been shifted for £1.8m by Hardy Mill Properties, representing a gross yield of 7.85& based on ERV.
The Manchester Office Agents Forum (MOAF) have released the take up figures for Q3 2015 which reached 373,477 sq ft, over double that of the same period in 2014, and brings total take up for the year so far to 1.05 million sq ft. Agents predict that the total take for 2015 will beat the figure of 1.33 million sq ft transacted in 2014.
One of the stars of the show has been Allied London’s XYZ building in Spinningfields which is now fully let twelve months prior to completion with over 100,000 sq ft of lettings secured to Global Radio, Shoosmiths and NCC Group - we're sure manyer developer would love to be in such a position.
Plans for the XYZ Building in SpinningfieldsA key letting this month has been that of international law firm, Freshfields Bruckhaus Deringer, which has confirmed One New Bailey as their new home in the city having acquired 80,000 sq ft. They will take occupation in early 2017.
No 3 St Peters Square - which had planning granted in May for 105,000 sq ft of offices - is currently being reviewed by Royal London Asset Management to ascertain best end use for the redevelopment of Peterloo House, having recently instructed Property Alliance Group to take into consideration alternative uses including hotel and residential (given the strong interest in both these sectors across the city). Dominic Pozzoni, director of Property Alliance, said:
“St Peter’s Square provides world class public space at the very heart of the City and we are investigating a number of exciting opportunities for the site which we expect to conclude shortly.”
Whilst writing, it is worth noting that headline rents in the city centre for Grade A accommodation have now reached £34 per sq ft following the recent letting of the last remaining floor at Chancery Place to Colliers International who have taken 7,786 sq ft on the twelfth floor.
Manchester City Council’s planning committee have also had a busy October having given consent to a number of new schemes in the city.
Plans by Forshaw Land & Property for an Ian Simpson-designed 42-storey residential tower by Mancunian Way have been approved by the council following initial funding issues. The scheme will include 420 new apartments and occupy the site of the concrete frame abandoned in 2005.
Plans for a 42 storey tower on River StreetAllied London have secured consent for the first phase of it's £1.3bn St John's development, including the refurbishment of the Bonded Warehouse and the demolition of the former Coronation Street set (to the dismay of many) to make way for a nine block mized-use development, 'The Village', comprising 66,700 sq ft of apartments, 80,000 sq ft of workspace and 36,500 sq ft of retail units
Also given consent was the redevelopment of 40 Fountain Street, rebranded as 11 York Street, for the delivery of 86,000 sq ft of office space by Aberdeen Asset Management; two new residential blocks comprising 191 new apartments at Potato Wharf by Lend Lease; and 30 townhouses, apartments and 100 parking spaces off Cutting Room Square in Ancoats.
Meanwhile, plans to demolish 10-12 Whitworth Street West and construct a 35-storey tower of 327 apartments were deferred by council planning officers.
In other development news, plans for the next phase of NOMA, 2 and 3 Angel Square, two towers of nine and eleven storeys which will deliver 350,000 sq ft of office accommodation by the end of 2018, have been submitted to the council for consideration. David Pringle, Director of NOMA at the Co-operative Group, said of the buildings:
“We want the whole neighbourhood to be totally cohesive in design terms and 2 and 3 Angel Square will broaden our offer for those businesses who want a more traditional modern office than some of the quirkier reconfigurations we have planned."
2 Angel SquareQuestions do however remain about the future of the Grade II-listed Hanover Building on Corporation Street which was significantly damaged by a major fire earlier this month. The building was due to be transformed as part of the wider NOMA development and deliver 91,000 sq ft of Grade A office accommodation.
Whilst on NOMA, the official opening of Sadler’s Yard - the new public square at the heart of the Co-op's £800m scheme - has been rescheduled for Thursday 3 December following delays caused by the blaze.
Revised plans for the one-acre plot at the corner of Princess Street and Whitworth Street on the edge of Manchester's Gay Village have been lodged by Urban&Civic. The scheme will include 238 apartments across two residential blocks, a 148-bedroom four-star hotel, ground-floor commercial units and a new public square above the exisiting basement car park.
Andrew Lavin, development manager for Urban&Civic, said: "This is an exciting new mixed-used development that will transform a key city centre site that has stood derelict for over a decade. Our vision is to create a vibrant development that sensitively reconnects the site to the surrounding area. We believe the introduction of local independent traders in the ground-floor units will help integrate the scheme into the neighbourhood."
Urban&Civic's original designs for the Princess Street plot have been revisedTH Real Estate have prepared a draft development framework for the eyesore that is Central Retail Park on Great Ancoats Street. The framework outlines regeneration plans for the unloved site to bring forward more apartments and an improved retail offer as well as the creation of a pedestrian route between Great Ancoats Street and New Islington Marina.
The Great Northern Warehouse has been fully acquired by the Hong Kong-based Peterson Group, in partnership with London-based Trilogy Property, with plans to spend a reported £300 million on a rethink for the Grade II-listed building. The 375,000 sq ft structure is currently home to a cinema, gym, casino, bowling alley, bars, restaurants, retail and a business hub, however, the purchasers plan to reinvent the property and define a new 780,000 sq ft mixed-use quarter. Proposed uses will include retail, restaurants, offices, cinema space and residential property which the developers hope will rival the ‘city quarters’ found in New York’s Soho or San Francisco’s South of Market.
CGI: Manchester HallRound the corner, Vision Developments have revealed further plans for the Freemasons Hall on Bridge Street, with the rebranded Manchester Hall promoted as an events venue including restaurants and bars and state-of-the-art conference facilities. The Freemasons will also retain the whole of the third floor for their private use.
Finally, on to planning news, and after much delay the Government has finally announced that temporary permitted development rights, due to expire in May 2016, will now become permanent. This most welcome news means that developers will be able to proceed with office-to-residential conversion schemes without the risk of development being halted next year.
The Government has gone one step further by allowing for easier planning rules regarding the demolition of offices and conversion to residential, this also includes the opportunity for conversion of launderettes and light industrial for residential use. Housing and Planning Minister Brandon Lewis said:
“Today’s measures will mean we can tap into the potential of underused buildings to offer new homes for first-time buyers and families long into the future, breathing new life into neighbourhoods and at the same time protecting our precious green belt.”
In which case, keep your eyes on those unloved and vacant buildings across the city.
See you in a month...
