Property round-up: MOAF; Manchester Data Centre; Landwood Property Auctions; MYP; MC Construction; Flexible Business Interiors
Manchester city centre enjoyed another strong year of office take-up in 2023, with 946,230 sq ft of office space let across 221 transactions. The final outturn was lower than the 5- and 10-year average figures, due to a lack of a big transaction in the year.
The 10 largest transactions completed in 2023 totalled 254,566 sq ft compared with 408,921 sq ft in 2022. MOAF is predicting strong take-up in 2024, with a number of high profile, large transactions due to complete in the first half of the year.
The 2023 period saw a new record rent of £43 per sq ft achieved when Pinsent Mason acquired space at 1 St Michaels, which is due to complete in August 2024. Hill Dickinson also agreed to take 18,192 sq ft in the same development.
Other notable transactions concluded in 2023, including Arden University acquiring 42,944 sq ft at 2 Hardman Street and Matillion acquiring 27,056 sq ft at 2 New Bailey Square.
The managed workspace market remained active, Cubo, Manchester’s latest entrant to this market, acquired of 30,829 sq ft at M&G’s new development, the Lincoln.
Eden secured the largest occupier in Q4, where BDO committed to 23,017 sq ft in English Cities Fund (ECF) uber sustainable new development. Eden has been designed to run on 100% renewable electricity. The building has the highest NABERS UK target rating for a new build development in the UK to date.
Rob Yates, Head of Office Agency at Cushman & Wakefield and MOAF Chairman, said: “Manchester’s office market continued to perform robustly, despite the global uncertainty and a diminishing lack of readily available Grade A supply.
“As we move in to 2024, with a supply of new developments delivering high quality office space to the market, we expect a strong start to the year with a number of high profile transactions in the pipeline.”
Outside the city centre, Salford Quays and Old Trafford performed strongly with 72 transactions totalling 218,199 sq ft.
Meanwhile, South Manchester saw 251 transactions, totalling 547,195 sq ft – the largest transactions being the letting of the Lakehouse, Cheadle Royal, 37,130 sq ft to Seda Pharma Developments. Other notable transactions included Hurst Accountants taking 11,248 sq ft at the recently completed, new development, 3 Stockport Exchange.
Adam Robson, Lambert Smith Hampton, said: “In totality, the out-of-town markets MOAF monitor, South Manchester, Salford Quays and Warrington transacted a total of 1,054,673 sq ft in 323 transactions demonstrating the vast extent and depth of the Greater Manchester office market.”
MOAF is made up of Avison Young, BE Group, CBRE, Colliers International, Canning O’Neill, Cushman & Wakefield, Edwards and Co, Fisher German, GVA, Hallam Property Consultants, JLL, Knight Frank, LSH, OBI, Savills and Sixteen.
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CGI of new Teledata facility
Teledata, which was acquired by Datum Datacentres in 2022, has announced that its new Manchester data centre is being developed with heat re-use capabilities as part of the company’s wider sustainability strategy.
The scheme will see Teledata’s new facility harness waste heat for conditioning, reuse and delivery to local projects in the Wythenshawe area.
The system is being designed so that heat exchangers can be used to transfer the thermal load of the data centre cooling loop to a local community heating network via a heat pump system. This process will also reduce the amount of energy needed to fuel the data centre’s cooling operation.
The new data centre (MCR2) is being developed next door to Teledata’s existing facility in Wythenshawe and the most up to date sustainability best practices and standards are being embedded across all parts of the build process, from design to implementation.
In addition, the facility will be powered using clean energy from renewable sources with green certificates and solar PV roof panels.
The PV system will generate more than 83,000 kWh/yr with a CO2 emissions reduction of in excess of 7.4 tonnes annually. A chilled water-cooling system with free cooling technology will be adopted and renewable HVO (hydrogenated vegetable oil) biofuels will fuel the emergency generators. The new data centre has been specifically designed to handle an external ambient temperature of 40+°C, to help mitigate climate change risks related to extreme heat.
The new site involves demolishing the existing building and designing a newer, more modern, energy efficient facility. This was determined to be the most environmentally efficient solution to support expansion. During construction, materials will be sourced from local suppliers wherever possible.
The works will avoid night time and high traffic hours to minimise noise impact. The waste management programme will ensure that all waste from the demolished building is handled efficiently and recycled where possible. The project also includes a biodiversity plan to protect nature and reverse the degradation of ecosystems.
The project is expected to support jobs for 15 full time staff, including suppliers, and the data centre facility will offer more than 50,000 sq ft of enterprise-grade colocation space with 2N power redundancy, 100% 24/7 uptime, ISO27001 certification and NSI Gold Approved BS5979 security.
Matt Edgley, Chief Operating Officer for Teledata, said: “We have worked hard to ensure that ESG principles are embedded at every stage of the development of our MCR2 facility. As a data centre provider, we have a responsibility to our clients to ensure that continuous capacity is available and is delivered sustainably, supporting clients as they strive to meet their ESG targets.
“We hope to be able to expand fast enough to meet demand in the Manchester region, so that we can support our clients’ growth through resilient, secure and dependable data centre services and hosting solutions.”
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James Ashworth
Landwood Property Auctions has reported a record year within its Property Auction and Sales team, with the online auction business seeing nearly 40% increase in lots sold.
This is complemented by an impressive 43% surge in auction sale prices – the highest amount in the team’s history.
With more than 7,500 bids placed over the past 12 months, the year outperformed its previous record-holding year in 2022 and surpassed its own year-end predictions.
James Ashworth, Partner at Manchester-based Landwood Property Auctions, said: “This year stands as a testament to our commitment to growth following a successful management buyout. Despite unprecedented legislative challenges for investors, we have successfully auctioned properties all over the UK, in every sector and achieved sales prices a combined 22% over client reserves.
“This showcases the dedication of the Landwood team. Our investment in talent and growing our team over the past two years, which has been pivotal in delivering this level of service.”
Among the year’s auction highlights is the sale of a grand five-bedroom residential property in Buckinghamshire, achieving more than £2.1m, an impressive 80% above the guide price, with more than 700 bids at a rate of one bid every 15 seconds.
On the private treaty side, the Grade II-listed 17th-century property, Bulstrode Park, known for its on-screen appearances in Charlie and The Chocolate Factory and ITV’s Midsomer Murders series, surpassed its £6m guide price.
Within commercial listings, highlighting its ability to sell all types of land, Landwood Property Auctions also sold an industrial 1,872 sq ft land plot in Carlisle for 194% above guide price at nearly £31,000.
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According to a recent study by Manchester Young Professionals (MYP), 66% of 250 young professionals surveyed said that finding affordable rental accommodation in Manchester City Centre is ‘very hard’.
The findings come as the young professionals networking group uncovers the challenges of relocating to Manchester and sourcing affordable housing in today’s rental market.
Rich Tyrrell, co-founder of MYP, said: “Manchester has quickly become a magnet for young professionals looking to progress in their careers in a fast-paced city environment. But although it’s a city of opportunities, our data shows that many people actually find it a challenge to live in Manchester and find suitable accommodation.”
An alarming 66% of respondents expressed that finding a room to rent in Manchester was ‘very hard’ compared with 28% who found it ‘not so bad’ and only seven per cent who found it ‘super easy.’
Rich continued: “These statistics show the intensity of the housing market in Manchester, leaving many young people facing problems when trying to find suitable living arrangements before moving.”
Further complicating the issues surrounding sourcing accommodation, nearly half (49%) of those surveyed said they find it ‘very hard’ to find a suitable flatmate.
In response to these findings, MYP recently announced a strategic partnership with UNION, an organisation dedicated to helping individuals find rooms to rent in Manchester with like-minded flatmates.
“Understanding the challenges young people in our community face is at the core of MYP’s mission,” added Rich. “Our collaboration with UNION aims to address the housing concerns found from our survey by providing a solution that goes beyond traditional housing searches.”
UNION focuses on matching individuals not just based on living preferences but also on shared interests, creating a more innovative approach to roommate matching.
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CGI of Crewe town centre
A multimillion-pound scheme to transform the civic and cultural quarter of Crewe town centre is under way.
The project involves:
- Creating a cleared site for a new history centre to co-host Cheshire’s archives;
- A new pedestrian link between the Lifestyle Centre, Memorial Square and Market Hall connecting into the southern gateway link;
- A new car park with 31 spaces;
- A new, two-storey Magistrates’ courts entrance;
- Public realm improvements, including new lighting, paving, seating and planting, bicycle racks, activity space and public art.
Salford-based MC Construction has completed the first phase of the scheme, which involved enabling works to strip out the former library next to Memorial Square where the history centre will be developed, clearing the structure over the existing Civic Centre car park and erecting a temporary entrance to the Magistrates’ courts.
MC Construction will begin the next phase in February when it dismantles the former library building and the existing concourse. This phase is expected to be completed by summer 2024.
The works by MC Construction are being undertaken for Cheshire East Council.
Russ Forshaw, managing director of MC Construction, said: “This scheme will transform the civic and cultural quarter of Crewe town centre by providing new and greatly improved facilities for the public.
“Having successfully completed numerous other projects for Cheshire East Council, we are proud to be working with the authority once again and to further strengthen our relationship with this valued client.”
The revamp is being supported by the Government’s Towns Fund and Future High Streets Fund.
The history centre, supported by the National Lottery Heritage Fund, will co-host the region’s written and pictorial history collections with a second history centre being built in Hoole, Chester. This scheme has been driven by Cheshire Archives and Local Studies, a shared service of Cheshire East and Cheshire West and Chester councils.
The centres will replace the archive service’s current facility and open the collections to new audiences across Cheshire. The centres will have climate-controlled environments and will feature event and gallery areas to host performances, workshops and exhibitions, more space for people to conduct research and better spaces to make the collections more accessible to the public.
Other professionals involved alongside MC Construction include Bowker Sadler Architecture, Davis Partnership and Wardell Armstrong.
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Horton House reception and cafe
Flexible Business Interiors (FBI), a specialist fit out and refurbishment company based in the North West, has unveiled its latest project completion at Horton House in Liverpool.
Owned by Ashtrom Properties, the Grade II-listed building sits at the heart of the city’s Exchange Flags development and has undergone a £1m refurbishment programme over the past six months. Designed by Incognito, the scheme has created a striking new reception area and business lounge on the ground floor, as well as bookable meeting rooms and café space.
With tenants including Brabners and Capgemini, Horton House is bursting with elegant, original architecture dating back to 1940’s. On the ground floor, this has been now been complemented with a sophisticated arrival space featuring a bespoke walnut reception desk and blue colour palette inspired by the site’s history and the Battle of the Atlantic.
Formal meeting spaces feature crittle glazed partitions and doors, as well as sleek, timeless furniture and a variety of planting, while the on-site café provides a vibrant heart space and social gathering spot for occupiers and visitors alike.
Delivered in a phased approach to minimise disruption, FBI completed the project within 20 weeks.
Guy Lewinsohn, CEO at Ashtrom Properties UK, said: “Our vision for Horton House was to go a step further than just providing exceptional office accommodation, we wanted our tenants to have the option to venture out of their private space and make use of a range of high quality, hospitality-led shared areas.
“Bringing people together in this way can be hugely valuable for productivity, collaboration and mental wellbeing, and goes a long way to creating that much sought after community feel.”
He added: “The professional team behind the transformation of Horton House has gone above and beyond to deliver fantastic environments that sit perfectly within this legacy building. Everything has been executed to the highest standard and has left our occupiers with a variety of flexible, modern workspaces available to them outside of their traditional office space, as well as a memorable arrival experience for visitors.”
Stephen Clarke, director at Flexible Business Interiors, said: “As a business we are seeing increasing numbers of projects from our client base looking to further the appeal of multi-let commercial properties, and this latest completion at Horton House is a great example.
“We are extremely pleased with the finished result at Horton House and to have worked alongside an excellent team of sub-contractors and consultants who have all worked tirelessly to meet our collective goals.”
In4m acted as project managers for the Horton House project.
