Allied London agrees £26.5m deal for Granada site
A PARTNERSHIP between Manchester City Council and the developer Allied London has agreed a £26.5m deal to acquire the former ITV Granada site in Quay Street.
The deal for the 13.5-acre site is subject to planning consent.
The partnership, called MQL (Manchester Quays Limited), plans to redevelop the area into a mixed-use destination within the next two years.
The area, across Quay Street from Allied London’s Spinningfields scheme, was vacated by ITV earlier this year, but is still the home of Coronation Street which will move to a new set at MediaCity, Salford Quays.
It has outline consent for 1.2m sq ft of offices, 200,000 sq ft of retail, 895 homes and a 575-space car park. Earlier negotiations with Manchester-based Genr8 and IKEA’s property arm, LandProp, fell through.
The Allied London tie-up was first confirmed last week before the deal, and the council’s involvement, was confirmed.
In a statement MQL said planning permission will be applied for once the remaining ITV staff and Coronation Street production team move to their new home at MediaCity next year.
Allied London chief executive Michael Ingall said: “We have considered the future of the ITV estate on several occasions and our long standing relationship with ITV has enabled us to acquire what we believe to be an exceptional real estate opportunity.
“We have taken control of over 800,000 sq ft. of existing mixed use real estate with various options for future occupation. The estate extends to some 13.5 acres and has development potential of in excess of 3 million sq ft, which we intend to bring forward in partnership with Manchester City Council.
“Our vision is to promote the creation of a completely new mixed-use quarter for Manchester City Centre, at the River Irwell, bounded by Quay Street and Liverpool Road, and produce a masterplan that integrates the established areas within the site with proposed new development. This area of the city is rich in heritage, history and character, and we intend to make sure this makes a valuable contribution to our thinking on design and development. We will seek to protect the heritage assets and ensure this whole area is developed in a holistic and sensitive way.”
ITV’s property director, Peter Copley, said: “With the majority of ITV’s business successfully migrated to MediaCity and the new Coronation Street set nearing completion, we are delighted to have completed the sale to a development partnership with such a strong record of delivery.”
Sir Richard Leese, leader of Manchester City Council, said: “We welcome this announcement about a key strategic site in the city and are pleased to be part of this partnership. We look forward to working with Allied and ITV to deliver comprehensive development which will contribute to our growth objectives for the city while respecting the important heritage aspects of the area.”
Jones Lang LaSalle advised ITV on the sale. North West chairman Bob Dyson said: “This represents a good deal for Manchester and signifies a real step forward in the city centre’s on-going development. Allied London’s pedigree in the city, the site’s location close to Spinngfields, and the Council’s role as both an enabler and advocate for regeneration, means their partnership is ideally placed to open up the next chapter in the area’s history.”
ITV was advised by the Manchester office of law firm Irwin Mitchell, while Shoosmiths advised MQL.