Axa acts

A further boost to confidence in Manchester has come from Axa Real Estate Investment Managers going ahead with the £50 million St Peter’s Square project. Axa manages this on behalf of the Co-operative Insurance Society and will replace Peterloo House with a 12 storey, 10,033 sq.metres (108,000 sq.ft.) building designed by Squire & Partners with WHR and CBRE as letting agents.

Equally as important is that KPMG has taken a pre let on 1 St Peter Square, further boosting confidence in the city centre, said Chris Mulcahy of Jones Lang LaSalle. He noted that city centre first half take up was 16,258 sq.metres (175,000 sq.ft.), which was below average.

“I expect the full year to be around 60,385 sq.metres (650,000 sq.ft.). There is a growing shortage of Grade A space,” he added, ”with Spinningfields’ existing buildings almost full.” He believed that developers would take advantage of the situation and start on new schemes, as illustrated by the Co-operative.

Andrew Timms of Edwards & Co said: “The market has not been as bad as we expected and I believe the year could see take up of over 65,030 sq.metres (700.000 sq.ft.). We also have some substantial schemes in the pipeline, such PRUPIM in Lincoln Square and ING’s plans for 250,000 sq.metres (2,690,998 sq.ft.) on the edge of Spinningfields.”

ING is seeking a development partner, on behalf of the West Midlands Metropolitan Authorities Pension Fund, for the project, which will transform the linked Byrom House and Astley House buildings into one large scheme. Also on the horizon is a major project by Siemens for its 21 acre site at Princess Parkway, where it is also seeking a development partner. The site, on the outskirts of Manchester, could house a 92,900 sq.metres (1 million sq.ft.) mixed use scheme. It will include a new 9,755 sq.metres (105,000 sq.ft.) office for Siemens plus an energy centre.

Another positive event is an Indian call centre taking 3,716 sq.metres (40,000 sq.ft.) in an Aegis property in the city centre.