£75m First Street office revealed

GERMAN  investor Patrizia Immobilien has formed a joint venture with Greater Manchester Property Venture Fund to deliver a £75m office scheme at First Street in Manchester.

The seven storey building will comprise 173,600 sq ft of space and has already been partially pre-let to Russian energy provider Gazprom which has taken 39,570 sq ft of space with a further option on 11,590 sq ft.

Patrizia is development manager on the scheme while Carillion has been contracted to build the scheme, delivery expected in 2017.

Patrizia acquired First Street in May 2015 and has been actively managing the site, along with original owner and local partner, Ask Developments.

First Street already comprises a 180,000 sq ft office building which is fully let to Auto Trader among others, a 208-bed hotel, bars and restaurants, parking and substantial public space. There is considerable capacity for further office development on site as well as the delivery of over 600 flats for rent.

James Muir, managing director Patrizia UK & Ireland said: “Little more than six months have passed since taking control of First Street and we have been making great strides, with this latest phase a testament to our work on site.

“The transaction shows that demand is there from occupiers and that investors are keen to back vibrant schemes such as First Street. At the same time, it highlights Patrizia’s ability to partner with a UK pension fund, and how we are able to use our balance sheet to create opportunities for co-investing with institutional clients.”

Cllr Kieran Quinn, chair of Greater Manchester Pension Fund, added: “Following on from the practical completion of No 1 St. Peter‘s last year, we are pleased to commence another large city centre development at First Street, that will further support the economic development of Manchester and the wider North West.”