Co-op agrees JV deal for NOMA

THE Co-operative has signed up Hermes Real Estate as its joint venture on the £800m NOMA scheme in Manchester city centre.

In a statement it said contracts have been exchanged for a 50:50 joint venture on the development which covers 20 acres of Co-op assets near Victoria station.

TheBusinessDesk.com understands the group had hoped to make the announcement last month but the timetable was derailed by the sudden departure of chief executive Euan Sutherland.

The deal with Hermes, which manages money for the BT pension fund, follows an abortive tie-up with Delancey and Landid. Talks ended last year with the Co-op saying it could not “agree the priorities” with the potential partners.

The first phase of NOMA was the Co-op’s new Angel Square headquarters building which was bought by RREEF Real Estate, the property arm of Deutsche Bank’s asset and wealth management division, and Chinese state-owned Gingko Tree Investment for £142m in February last year.

NOMA director David Pringle said: “This represents a great opportunity to bring together two like-minded businesses that have a commitment to responsible, sustainable property development – an approach which sits at the heart of the NOMA scheme.
 
“Together The Co-operative Group and Hermes Real Estate have a shared belief in what NOMA can deliver and over the next 10 years we plan to create a new neighbourhood, designed to meet the needs and aspirations of modern businesses with a real community at its heart.
 
“It is our intention to build new offices, homes, shops, hotels, restaurants and cafés, and to refurbish several iconic listed buildings as well as creating contemporary outdoor squares and spaces.”
 
Hermes’ chief executive Chris Taylor said: “We are delighted to enter into this strategic land partnership with The Co-operative Group. This is consistent with our UK strategy of investing in commanding sites within major urban areas that combine the benefits of improved infrastructure, regeneration, enhanced public realm, proximity to major retail and leisure facilities and which, ultimately, provide a sustainable place for people to work and live.
 
“NOMA is an exciting growth opportunity within a dynamic city and has similar sustainable development attributes to our recent investments in Paradise Circus, Birmingham and King’s Cross, London.”
 
Colliers represented the Co-op and JLL acted for Hermes.