Aviva acquires speculative 85,000 sq ft Manchester development

Aviva Investors has agreed to forward fund the development of Eleven York Street in Manchester after acquiring the freehold interest in the site from Kier Property.

Kier Property and Aviva Investors will work together to deliver the 85,000 sq ft office development.

The building, which has been designed by architects AHR, will provide office space totalling 79,165 sq ft over seven upper floors with floor plates of between 10,211 sq ft and 11,668 sq ft.

The property will include two ground floor retail and leisure units totalling 5,274 sq ft, as well as 23 basement car parking spaces.

The development, originally known as Oddfellows House, sits on a island site in Manchester’s central business district and is the final piece of Manchester’s prime space for development in the Spring Gardens, York Street and Fountain Street area.

The speculative scheme will be the first office-led development delivered in this traditional core area in over a decade.

The project, which is due to complete in the fourth quarter of 2019, will add to Aviva Investors’ growing and diverse portfolio in Manchester city centre.

Aviva Investors’ ongoing commitment to Manchester is evidenced by the acquisition of 201 Deansgate and 55 Spring Gardens in 2017 combined with its long-term ownership of assets, including the recently refurbished 11 Portland Street and the leisure and dining destination at the Corn Exchange.

Christian Anderton, associate director at Aviva Investors, said: “York Street will represent our best specified office asset in Manchester and adds to a strong portfolio of space diversified by location and price point. Manchester, which is characterised by a lack of new Grade A stock being delivered locally, forms a major part of our targeted cluster investment strategy. The marketing campaign for the scheme will launch imminently and break new ground in the viewing experience, enhanced by the building’s vertical design and resident lifestyle proposition.”

Will Lewis of OBI Property, who represented Aviva Investors on this transaction, said: “Eleven York Street is the only Grade A office building to be developed in the central core of Manchester since the last cycle. We have carefully considered the development pipeline and due to its location and with diminishing levels of prime Grade A space, we are perfectly placed to a secure those occupiers looking for best in class accommodation and a long-term partner in Aviva Investors.”

Tom Gilman, managing director for Kier Property (North), commented: “We are delighted to be working with Aviva Investors again – we have developed and sold several schemes to Aviva Investors over the years and we are pleased that they have identified 11 York Street in Manchester as a piece of prime commercial office space. We are continuing to look for further opportunities in Manchester, across all asset classes and see the area as contributing further growth to our fast expanding plans in the North of England.”

Will Kennon of CBRE advised Kier Developments.