HBD’s Island secures first tenant
Virgin Media O2 has signed a 10-year lease to occupy 45,700 sq ft within the Greater Manchester Pension Fund-backed office off John Dalton Street in Manchester.
This is the first pre-let for Island, which is the product of a joint venture between GMPF and developer HBD. The office block is nearly finished, with a completion date set for the end of this month.
Virgin Media O2’s customer service agents will take over the top five floors of the nine-storey office block. That amounts to more than half of the 91,000 sq ft of office space in the building.
Virgin Media O2 will relocate from around 100,000 sq ft at Concord House in Wythenshawe to the Cartwright Pickard-designed building, one of a few grade A office schemes currently under construction in the city.
“This significant investment demonstrates our commitment to retaining a sizeable presence in Manchester, with a flagship new office that places us in the heart of the city’s thriving technology hub,” said Patricia Cobian, Virgin Media O2’s chief financial officer.
“The state-of-the art office will provide a vibrant space for our employees in the North West to get together in person and collaborate, meeting our needs now and helping to attract future talent. Improving our people’s experience was a key focus in the selection process, and Island offers our employees a wide range of amenities and facilities that are not currently available to them.”
Tim Roberts, chief executive of HBD parent company Henry Boot, described Island as a “truly outstanding office space in Manchester”.
He said: “This landmark pre-let is testament to HBD’s expertise in delivering sustainable commercial office spaces that exceed occupiers’ expectations and support them in attracting and retaining the best talent,” he continued.
Greater Manchester Mayor Andy Burnham also threw in his praise for the letting, stating: “It’s very positive to see Virgin Media O2 bring their new North West HQ to Manchester in a state-of-the-art facility with net-zero carbon workspaces that enhance our carbon neutral plans. This multi-million-pound investment will bring a significant boost to the city-region and highlights Greater Manchester as a place where companies want to invest.”
Burnham was not the only one to mention the building’s sustainability credentials as one of its major draws.
Island is targeting a BREEAM Excellent and EPC A rating. It also has ambitions to achieve a 5.5* rating from NABERS, having already signed a 5* NABERS Design for Performance Agreement. The building also has a WELL Gold score.
Henry Boot’s Roberts stated: “Island’s unrivalled sustainability credentials make it an attractive site for a diverse range of occupiers and we look forward to welcoming more tenants into Manchester’s best-in-class office space to support their business and ESG ambitions for many years to come.”
HBD managing director Ed Hutchinson added: “Island has been carefully designed around the needs of the occupier. Not only is it a highly intelligent and sustainable building, but it’s one which prioritises people’s health and well-being. Virgin Media O2’s values are perfectly aligned with ours and we’re proud to welcome them to Island.”
OBI represented Island on the deal. CBRE advised Virgin Media O2. CBRE and OBI are joint agents on Island.
All those people who said cities would die post-pandemic are currently crying
By Anonymous
CBRE are also retained by HBD on the scheme. Important this information is published as part of the article.
By Clarity
Hi Clarity – somehow that got lost in an early revision, as that was part of the original story. Have added it back in. Thank you for letting us know!
By Julia Hatmaker
Don’t CBRE advise GMPVF too?
By Iffy
It’s good to see new office space being let but Virgin Media 02 have reduced their office requirement by over half. That cannot be a good sign.
By David
Are we going to talk about how Virgin Media have downsized from 150,000 sq ft, to less than 50,000 as ft!
By Size Matters
Most of them work from home now do they don’t need as much space
By Anonymous
Whilst a positive deal for the city’s commerical office sector, the fact VM have halved their space requirements shows the longer term challenge ahead. Nevertheless a great result for the HBD team. Fortune favours the brave. Well done.
By Mr Mcr
@October 15, 2024 at 5:35 pm
By Size Matters
A lot of companies, such as Virgin Media, use a hybrid working model, so they won’t require as much square footage. Moving into the centre of the city also makes sense, supporting local businesses like shops, cafes and restaurants.
By Anonymous
The point of less size = flight to quality. Quality space, where people like to be, with strong ESG credentials and amenity spaces. Welcome to the world of operational real estate 🙂
By John W
Wythenshawe employment levels now in tatters….
By Richard B
Sadly this building falls short of expectation. It looked ‘ok’ in the CGIs, but it is a really poor design in the flesh. Considering this is one of Manchester’s most prestigious addresses, this building is more akin to a 1990s regeneration project in a dormitory town.
By Heritage Action
Are you ok @Heritage?
By Anon
@October 16, 2024 at 12:26 pm
By Heritage Action
I disagree with you on that one. I think it’s one of the more better commercials buildings of late. The brickwork is decent and there’s some intricate metalwork at the base. At least it’s not another slice of spreadsheet architecture from the usual suspects.
By Rye
I think heritage action needs to get his glasses prescription upgraded
By Anonymous
@Heritage Action
I hear you but have to disagree on the CGI comparison. I think this looks even better in the flesh and would happily welcome this sort of style in other parts of the city rather than the civic quarter.
By Anonymous
Heritage Action – I wholeheartedly disagree. I’m often quite harsh on developments but this is one of the best built in Manchester recently.
By EH