Manchester a target for global investors, says Savills

PROPERTY consultancy Savills has said that more than a third of investments made in Manchester’s office market over the past five years has been made by overseas investors.

The FTSE 250-listed firm revealed its findings to coincide with an event held last week to celebrate its 15th anniversary in the city.

It said that 15 years ago local properties and UK funds dominated the city’s office investment market, with firms such as P&O Properties, MEPC, Bruntwood, Greater Manchester Pension Fund and CWS owning much of its office assets.

Now, though, the city competes on a global platform, with 35% of buyers over the past five years coming from overseas. They have included international funds such as Credit Suisse, Oppenheim, Hansainvest, Aerium and Europa Capital.

Peter Mallinder, head of Savills Northern region, said: “Over the last 15 years Manchester has not only been driven by strong indigenous demand but also by increasing levels of inward investment.

“When we established our office 15 years ago, Manchester and its economy was going through a period of restoration following the Arndale bombing, which forced the city to reinvent itself supported by dynamic leadership, vision and a viable business strategy.

“This in turn helped to generate a new wave of sustainable development with the success of office schemes such as One Piccadilly and Spinningfields providing confidence and acting as a catalyst for further development, helping to put us on the radar of national and international investors.”

Savills also said that demand from overseas occupiers has also helped to grow the size of the city’s office market, which has grown take-up from 450,000 sq ft in 2006 to a peak of 1.3m sq ft last year.

Patrick Joynson, head of Savills Manchester, said: “Strong civic leadership has been a driving force in generating the inward investment and development that has been so vital to Manchester’s renaissance over the last fifteen years and propelled us onto the international radar.

“The city has grown in every capacity and is now recognised as a global brand maintained by the recognition of our ingenuity, airport, universities and football teams.

“Furthermore, our broad employment origin has matured considerably and now supports a diverse business base.”

The firm’s own Manchester ofice has grown from a start-up team of three people in 1996 and a turnover of £450,000 to more than 150 people and £13m respectively last year.