Evergreen funding confirmed for Allied London

Allied London has secured £15m of public sector funding towards the development of the Cotton Building at Spinningfields in Manchester city centre.

The North West Evergreen Fund has provided a £10m development loan, as tipped by Place North West in January, with the Greater Manchester Combined Authority's Growing Places Fund providing a further £5m loan.

The financing will enable construction to take place on the 160,000 sq ft property, with work set to begin this month. Completion is expected by the end of 2015. Enabling works are currently under way.

Michael Ingall, chief executive of Allied London, said: "Given the significant amount of investment, construction is now able to go ahead on what will be one of Manchester's most exciting buildings."

Andrew Antoniades, director of CBRE Capital Advisors, Evergreen Fund's investment adviser, said: "The development funding market in the regions is changing at an exciting pace, and financing major city developments has changed dramatically over the last few years.

"We are seeing an increasing need for this type of complex, structured funding to ensure vital city regeneration projects actually get built."

Evergreen uses European Regional Development Fund cash to enable urban development aimed at job creation and low carbon design in priority sites, and is underwritten by the European Investment Bank. The current Evergreen fund is oversubscribed and a second fund is expected to be launched in 2015.

Your Comments

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What does this say about Manchester as a place to develop and invest? Surely the best office location outside London has enough pull to not need hand out funding?

By Will Young

It says that finance is difficult to obtain for speculative development. This is true for London as well. "Will Young" you are poorly educated.

By Bold

I’ll stick to singing, then.

By Will Young

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