BACK-to-school time means the property market is now back in full swing and September has certainly been a month full of positive news for both commercial and residential sectors.
The Carlyle Group are preparing to sell Three and Four Piccadilly Place for a reported £115 million
One question regularly asked of me is this: 'Where does Manchester's commercial core lie in the city?' Is it the traditional Central Business District or Spinningfields, or does Manchester now benefit from two cores with a third emerging at St. Peter’s Square? This is a a debate that will continue as Manchester evolves and as new quarters emerge within and over the boundaries of the city; First Street being a prime example.
This week, the Mayfield Partnership (London Continental Railways, Transport for Greater Manchester and the City Council) announced they are seeking a development partner to help bring forward the 24-acre Mayfield Quarter comprising 1,300 new homes, 750,000 sq ft of office space, a 350 bedroom hotel, a new six-acre park and complimentary retail and leisure uses in the area previously billed as the 'Whitehall of the North'.
Council leader Sir Richard Leese said: “I’m pleased we’re launching the search for a development partner who will help us to deliver a scheme which over time will make a significant contribution towards the city’s growth, by leveraging Mayfield’s proximity to Manchester Piccadilly Station and the planned new HS2 terminal.”
It is estimated the development will bring 7,500 new jobs to the city.
Mayfield Quarter renderJackson’s Row Development Partnership have joined up with Chinese and Singaporean investors to help bring forward a new 'Urban Quarter' with the redevelopment of the 1.8 acre site bounded by Jackson’s Row, Bootle Street and Southmill Street in Manchester. Known as St Michael's, the site includes the old Bootle Street Police station, the United Reform Synagogue and the Sir Ralph Abercrombie (many a drinker will be sad to see this pub potentially levelled). The £150m regeneration framework put forward to the Council proposes a five-star international hotel, residential apartments with roof gardens, Grade A offices and a new facility for the Synagogue. However, it should be noted that negotiations are still on-going with the various landowners before anything can begin.
Bootle Street police stationBruntwood and Select Property Group have also revealed their vision for the former BBC site at Oxford Road and have produced a masterplan for the phased development of 2.5m sq ft of mixed-use accommodation.
The first planning application features two serviced apartment buildings targeted at mature, postgraduate and international students with following phases delivering up to 350,000 sq ft of commercial space.
Chris Oglesby of Bruntwood said: "We've produced a masterplan that embraces and exceeds the ambitions of the city's Strategic Regeneration Framework to create a vibrant new neighbourhood [...] connecting the city centre with the Corridor Manchester [...] to support the cross-fertilisation and commercialisation of ideas.”
Bruntwood are also set to secure the development agreement with Network Rail for the £400m project at Oxford Road station to bring forward up to 500,000 sq ft of mixed-use development after Muse Developments withdrew their interest.
Worthington Properties have also submitted plans for the demolition of Pannone’s old premises at Lincoln House and 123 Deansgate to bring forward 113,500 sq ft of Grade A offices that will complement the existing offering at Spinningfields with construction - subject to the city’s approval - beginning by 2016. This represents the start of the Lincoln Square redevelopment with M&G partnering with Marshall Group for the redevelopment of Brazennose House. PRUPIM had previously secured planning permission for the redevelopment of this unsightly building back in 2011 for 150,000 sq ft Grade A offices with shops and restaurants.
Plans for Lincoln House on DeansgateManchester City Council and Manchester Place are also seeking expressions of interest for the sale of the 1.5 acre former Bridgewater car park on Little Peter Street, adjacent to First Street.
In case you've missed it, there's a real buzz about Chinese investment into the city with George Osborne announcing an investment by the Hualing Industry and Trade Group to unlock three major property projects by the Scarborough Group in Manchester, Leeds and Sheffield with a gross value of £1.2 billion. Hualing will back Scarborough's Middlewood Locks masterplan, which includes a total of 2000 new homes and 750,000 sq ft of mixed-use space - including offices, restaurants and shops - over a 24 acre site bordering the Manchester Bolton & Bury Canal.
George Osborne has been a busy man in China, also showcasing the opportunities that the Northern Powerhouse can bring. Osborne has highlighted some £24bn worth of 'unprecedented' investment opportunities across the North and has urged Chinese investors to bid for contracts to build HS2:
"From Liverpool to Newcastle we are opening up our doors to investment that will not only help us to grow and create jobs, but will allow us to build infrastructure to rival any region in the world,” said Osborne.
BNY Mellon have commissioned a report on the Northern Powerhouse titled 'Manchester 2025', highlighting Manchester's central position within the Powerhouse and the potential to create 55,000 jobs by 2025, 5,000 jobs per year, which will also stimulate population growth in the city and thus increased requirement for accommodation, improved transport links and increased investment into the city overall.
CBRE have taken this further and outlined 'five crucial factors for success' of the Northern Powerhouse initiative. They are: Infrastructure-driven growth; Global capital seeking yield; Talent and new sectors; Place-making and quality of life; Leadership through devolution.
Osborne has pitched HS2 to Chinese investorsManchester is also seeing certain stalled developments (many would say eyesores) from the recession beginning to re-emerge, the most prominent of these being the former West Properties’ Origin site near the Gay Village.
Urban & Civic revealed new plans for the untapped site on the corner of Princess Street and Whitworth Street, having re-worked the scheme to build on the existing basement dug-out in 2008. They have removed the office element of the scheme and plan to bring forward a development that includes two buildings comprising 240 apartments, a four star hotel, and a mix of retail and leisure.
Andrew Lavin of Urban & Civic said of the development:
"We believe the introduction of retail and restaurant units on the ground floor level showcasing some of the city's finest and most eclectic artisans along with a landscaped public square will help reinvigorate and re-energise this part of the city."
On top of this, West’s former 18,000 sq ft offices premises at 56 Princess Street, adjacent to the Origin site, has been sold to Bluefig Investments (UK) for £2.7 million. There are however other West legacy sites including the Renaissance Hotel where the future is still uncertain.
River Street shell
Planned River Street towerAnother scheme many Mancunians, especially those who travel along the Mancunian Way daily (watch out for the ho.. bugger), will be pleased to see re-emerge is the empty shell that currently exists on River Street, which has remained vacant since 2005 and is currently being used as a zombie car park and street artist's canvas.
Plans have now been submitted by Forshaw Land & Property for a 42-storey tower designed by SimpsonHaugh & Partners which will provide 420 new apartments.
Over in Ancoats residential development continues to thrive with Manchester City Council approving Mulberry’s plans for a fourteen storey 134 apartment PRS tower on the corner of Port Street and Great Ancoats Street. Architect Tim Groom said:
"Gaining planning approval on Port Street is a significant step for the growing resurgence of Ancoats. We worked hard on the design to help knit back together what has become a disjointed and, in places, rundown streetscape.”
The PlazaAlso, X1 have submitted plans for The Plaza at Isaac Way and Advent Way which, if approved, would being forward a ten storey tower, with private gym and ‘wraparound winter garden’ (facing the Etihad - a bonus for any young professional City fans out there), and 210 new homes including townhouses and apartments.
And finally, hot off the property press is the news that the Carlyle Group are preparing to sell Three and Four Piccadilly Place for a reported £115 million, representing a yield of 5.75%.
Confidential's property roundup comes via Adam Robson, Director at AKM Property Consultants
