PATRIZIA has completed the acquisition of the 20 acre mixed use First Street site in central Manchester for an undisclosed price. The announcement comes just days after a detailed planning permission for a large modern office building was submitted in the latest phase of the development.
This follows a number of key milestones achieved on the site over the past six months including the opening of HOME, the Melia hotel and a Sainsbury’s Local store, along with securing the pre-let of a 40,000 sq ft office building to Gazprom.
Yet these sizeable achievements are nothing compared to the ambitions PATRIZIA has for First Street, as the firm intends to develop up to 1 million sq ft of commercial space.
The new office building, designed by architects Fletcher Priest, will provide 170,000 sq ft of Grade A office space in the heart of Manchester city centre and will, together with HOME, form the central plaza of the First Street development, known as Tony Wilson Place.
There are also plans for 550 private rental apartments on the site, marking PATRIZIA’s maiden investment in the UK Private Rental Sector (PRS) providing the foundation of its dedicated UK PRS fund. The venture builds on the company’s European track record in the sector, which includes the management of a portfolio of 80,000 apartments valued at €7 billion.
PATRIZIA UK managing director James Muir says; “Completion of this transaction quickly follows on from plans being submitted for a major new office development at First Street, another sign of progress, as we deliver on this ambitious scheme.
“This off-market transaction not only provides PATRIZIA with access to both development and asset management opportunities in a thriving regional city, but also provides PATRIZIA with its first foothold in PRS as we target opportunities UK-wide.”
Head of portfolio management at PATRIZIA UK Rob Brook adds; “Manchester is booming and First Street is right in the heart of this revitalised quarter, combining culture, living, commerce, and a host of retail and leisure opportunities.
“The new office development is designed to embrace its local surroundings and is at the forefront of modern work space design. First Street has had a busy 2015 so far and we are very excited about the future potential for this site.”
PATRIZIA UK now owns 100 per cent of First Street, while locally based Ask Real Estate will take the role of development partner.
Germany-based PATRIZIA Immobilien AG has been active in the property market, as an investor and service provider, for over 30 years. The company manages assets valued at approximately €15.5 billion, primarily as a co-investor and portfolio manager for a range of funds and institutions.
