A joint venture between property firms TPG Real Estate and Stoford Developments has completed a land acquisition deal that could pave the way for thousands of employment opportunities in Manchester.
Icon Industrial snapped up 45-acres of development land at the Global Logistics site – an agreement with the potential to deliver 1,000,000 sq ft of logistics space and 5,000 jobs at Airport City Manchester.
Airport City, considered one of the UK’s biggest joint venture commercial projects, has so far seen more than 2,000 jobs created and attracted significant investment across the 821,000 sq ft already developed.
Completed for undisclosed sum, the Global Logistics deal means 75 acres of Airport City Manchester’s 130-acre total have now been transacted by joint venture partners Manchester Airports Group (MAG), developer BCEGI, construction services giant Carillion and the Greater Manchester Pension Fund.
MAG Property CEO Lynda Shillaw said:
“The sale of 45 acres at Global Logistics is a significant milestone and builds upon the £30m of investment made by the joint venture to date.
“Airport City Manchester is a really exciting location for occupiers, located at the southern growth node of the region, an already well-established business location alongside the Manchester Airport campus.”
“This transaction comes at an exciting time for the Airport City Manchester joint venture as momentum is building around the first new offices and hotels planned to start on site.”
The development land at Global Logistics, which has outline planning permission for 952,000 sq ft of space to let, will be transformed into a logistics asset with a total development value of around £100m.
Global Logistics is already home to a number of international businesses operating in the sector, including Amazon and DHL.
Carillion Developments MD Simon Eastwood commented:
“The progress we have made at Global Logistics has been strong and has set the pace for what will be delivered at Airport City Manchester.
“Across the site, we’re in advanced discussions with a number of potential major occupiers who require campus style offices and there continues to be strong interest from hotel operators, which on the back of the growth of the airport, see the clear benefits of this unique location.”
Elsewhere, work on the £15m Enterprise Way link road is now underway at Airport City North.
Due for completion in February 2018 and being delivered by main contractor BCEGI, the road will connect office and hotel development plots within Airport City North to the rest of the site and the wider Greater Manchester transport network.
The £1bn Airport City Manchester development will, once complete, comprise 5,000,000 sq ft across offices, hotels, advanced manufacturing units, logistics facilities and ancillary retail space.
Airport City Manchester was advised on the transaction by CBRE, JLL, Eversheds Sutherland and Slaughter & May. Stoford and Gateley acted for Icon Industrial.