Multi-million pound property double for city

TWO multi-million pound property deals have been struck for the city centre of Manchester with the acquisition of the former Bauer Millett car showrooms and the Piccadilly Place retail and office scheme.

The 1.74-acre showroom site adjacent to Hilton Tower and Manchester Central looks destined to be a mixed of offices, a hotel, shops, residential and parking with an eventual value of £300m.

The deal follows the completion of Carillion’s major investment into Ask Real Estate (AREL) in January. The site is Ask’s first new development opportunity in Manchester city centre.

The scheme will be delivered in a partnership between Ask, Manchester City Council, Transport for Greater Manchester (TfGM) and Manchester Central.

John Hughes, managing director of Ask, said: “Our new corporate relationship with Carillion, which was only completed in January, has given us the platform to move quickly to acquire this prime piece of real estate in the city centre.

“I am looking forward to us working in partnership with MCC, TfGM and Manchester Central and evolving our exciting development proposals before submitting a detailed planning application later this year.”

Meanwhile, Piccadilly Place in the centre of Manchester has been bought by a real estate fund Are Management for a figure believed to be £118m.

It has acquired 3 and 4 Piccadilly Place, formerly owned by Carlyle Group, along with a three-storey car park.

Current occupants include Arup, Barclays, Egincia, Orega, NuGen, Weightmans, EC Harris and the NHS Strategic Health Authority. Retailers include Starbucks  and Pita Pit.

Ares partner Wilson Lamont said: “The market fundamentals in Manchester look increasingly attractive, and we believe Piccadilly Place, which is ideally located next to a major transportation hub and in a high-traffic area of the city, is set to benefit from this strategically important and improving location.

“We see significant potential to make a number of improvements and add value to the property including filling vacant space and improving the management of the properties.”

Ares was advised on the transaction by Property Alliance Group and King Street Commercial.

A spokesman for Property Alliance Group told TheBusinessDesk: “We will be working up a plan to utilise the piazza and create events and activity there. We will be working with local companies and existing tenants to attract further retail and leisure opportunities.”