Consent for £50m Manchester office development
Planning consent for a multi-million pound office scheme in central Manchester has been granted.
AXA Real Estate has received permission for a £50m scheme (pictured) that will commence once 50% of the building has been pre-let. The existing building, known as Peterloo House, is owned by Co-operative Insurance Society.
AXA will demolish Peterloo House, a 7-floor office block offering 40,000 sq ft. A new 12-storey block is planned that will create 108,000 sq ft of Grade A floor space. The building, which is expected to be let on a multi-tenant basis, will accommodate about 800 people. An energy-efficient building has been designed that is set to achieve a BREEAM rating of ‘Excellent’.
Commenting on the scheme, Dorrien Thomas, UK Head of Asset Management at AXA Real Estate, said: “Receipt of planning consent at St Peter’s Square means that we can now push
ahead in earnest with marketing this new well-located Grade A office space in the middle of
Manchester’s central business district”.
The supply of central Manchester office space is expected to increase as other potential schemes gather pace. Market reports suggest that developers Allied London are close to securing £165m of funding from a German investment fund for a 350,000 sq ft speculative office scheme at Spinningfields. The building has been designed by Foster & Partners, who also designed the office block at 3 Hardman Square.
However, some agents believe demand for such projects might not be that great. Chris Cheap, director of office agency at GVA, said: “It’s great news that potential investors are looking to Manchester but if developers are looking for pre-lets on such huge developments, it may take some time to get construction off the ground.”
Joint marketing agents for the St Peter’s Square scheme are CBRE and WHR Property Consultants.
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