NatWest mulls bids for 365,000 sq ft Manchester office
The bank is understood to be seeking offers of around £70m for One Hardman Boulevard in Spinningfields, which it will vacate in autumn.
While market sources claim bids so far have failed to reach NatWest’s aspirations, two bidders are reportedly battling it out for the building.
Lincoln Property Group and a partnership between Apollo Global Management and Allied London, the company that developed Spinningfields, are looking to secure the asset for around £40m, according to a source close to the deal.
Other bidders rumoured to have been in the running include Royal London and Axa.
NatWest acquired the 365,000 sq ft block from Pension Protection Fund for £293m at the end of 2021.
The deal was the UK’s largest property transaction outside London in 2021 and one of Manchester’s largest single-asset sales ever.
At that time, the bank had around 18 years to run on its lease.
By acquiring the building, NatWest has now been able to tear up its lease on the 365,000 sq ft building amid a rise in hybrid working.
One Hardman Boulevard is now surplus to requirements and the bank is assessing its options, including consolidating operations into the smaller 150,000 sq ft One Spinningfields Square.
The company is now in the process of decommissioning One Hardman Boulevard and has appointed Cushman & Wakefield to find a buyer for the building.
One Hardman Boulevard marks an “exciting opportunity to reincarnate the building into a world-class, flagship Grade A office building with market-leading ESG credentials”, according to marketing materials prepared by Cushman & Wakefield.
Possible interventions outlined by the consultancy, working in partnership with LOM Architecture and Design, include splitting floor plates to accommodate four tenants per floor, introducing wellness facilities such as a gym in the basement and café/bistro on the ground floor, and incorporating more biophilia into the building.
Cushman & Wakefield declined to comment. NatWest was approached for comment.
NatWest reported an increase in operating profit of £1.3bn in 2022 compared with 2021.
And to think they knocked down Northcliffe House (would have made a fabulous hotel) for a glass office building that is now standing empty.
By Loganberry
Sorry – does this mean the building is now worth up to £250 million less than NatWest paid for it 2 years ago? That would seem quite a big drop, even if it is now being billed as a fixer-upper…
By Anonymous
Not exactly. Natwest acquired the building for £293m because that was (more or less) the amount left to pay on its lease. By strategically acquiring the building it occupied, NatWest was able to end its lease and sell the building it no longer needs. Thanks, Dan
By Dan Whelan
Sooooo much empty office space in Manchester city centre nowadays
By Gilly
I think Gilly there is so much office space in Manchester period and it’s still being built much like all of the apartments and other infrastructure that large successful cities need to grow. The alternative is they don’t grow, attract jobs, investment, people etc and then they become quaint backwaters or worse . But then you know that really, I mean this is a development site isn’t it.
By Dan
Sorry Gilly, poor effort, read The Subplot this week…’Manchester and Leeds high on the list – have consistent demand and a strictly limited supply of new offices.’ Now that’s the reality!
By Jilly
@Jilly – I read a lot of reports like that, but then I walk past the Lincoln about once a week and wonder where all the demand is…
By Salfordian
Can someone explain to me how a building that sold for £293m two years ago is now failing to sell for £70m. My mind has been blown.
By Confused.com
Hi Confused.com. Natwest acquired the building for £293m because that was (more or less) the amount left to pay on its lease. By strategically buying the building it occupied, NatWest was able to end its own lease and sell the building it no longer needs, saving money in the long run. Thanks, Dan
By Dan Whelan
Good deal, Great location too. As for offices generally, Manchester has sooooo many business districts never mind just office buildings a percentage will always be empty. Fairly obvious really.
By Anonymous
No matter how you dress it up, a £223m loss is a loss. Whoever convinced the board that by doing this they are saving money then they could sell ice to the eskimos! Why not just rent it back out?
By Anonymous