Co-op and Hermes complete NOMA deal

THE Co-operative has completed its joint venture with Hermes Real Estate to develop the £800m NOMA scheme in Manchester city centre.

The 50:50 joint venture will cover 20 acres of Co-op assets near Victoria station.

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.

Martyn Hulme, managing director of The Co-operative Estates, said: “Completion of the agreement shows our real intent to move NOMA forward in earnest thanks to the shared purpose of two like-minded businesses. Hermes has a proven track record of delivering large scale schemes such as NOMA, and residents and businesses within Manchester can look forward to seeing the project enhance the city centre enormously.”

Chris Taylor, chief executive of Hermes Real Estate, said: “The signing of this strategic land partnership is in line with our strategy of investing in dominant sites in major urban areas that will provide sustainable places to work and live. NOMA and the surrounding area also benefits from improved infrastructure, enhanced public realm, proximity to major retail and leisure facilities which are all important factors in our investment process.

“We are delighted to be a part of such a pivotal project for Manchester and our experience with other city centre developments, including Paradise Circus, Birmingham and Kings Cross, London, will be helpful in ensuring that we reach our goal of providing a sustainable environment for visitors, workers and residents alike.”

JLL acted for Hermes Real Estate, while Colliers represented The Co-operative Group.