Mcr Council could buy and leaseback Spinningfields plots
MANCHESTER City Council is considering the purchase of land at Spinningfields from Allied London, to help kick-start the development of a further 580,000 sq ft on site.
The council is proposing to acquire the freehold interest in two remaining development sites – 1 and 2 Hardman Square and 2 and 3 Hardman Boulevard – and then lease them back to the developer on long leasehold.
The deal would give Allied London the required funding to build the next phase of Spinningfields, with building works starting in 2011 and completing by the end of 2015. Marketing for the undeveloped plots would begin this summer.
A report to the council executive, ahead of a meeting next week, said the two plots would be developed around floor plates of between 20,000 sq ft to 35,000 sq ft.
It added that current availability at Spinningfields is “very limited”, with around 55,000 sq ft of commercial space remaining between 3 Hardman Street and The Avenue, less than 2% of the commercial floor space that has been developed overall.
The report also said that unless it invested in the scheme it was “unclear” when the next phase of development would start, and whether it will commence at all without a significant pre-let.
The council did warn that there was a degree of commercial risk in bringing forward the development, given current market uncertainty, but added that its benefit to the city and regional economy “more than mitigates” the associated risk.
The report added: “There are also elements of public realm that need to be completed to create key pedestrian linkages to the remaining parts of the central core, and surrounding streets and spaces including Deansgate through to Lincoln Square; Bridge Street through to Motor Square and House of Fraser; and Scott Street through to Peter Street, thereby improving access to the retail and leisure opportunities that will be created.”
Allied London has so far funded all development at Spinningfields and own 3 Hardman Street, 1 The Avenue and all the future development plots including Manchester House, Quay House (1 and 2 Hardman Square) and Hardman Boulevard.
