Allied London closing in on £20m Granada site deal

Allied London is reported to be in detailed talks with ITV about acquiring the 20-acre former Granada Studios site in Manchester.

It is suggested that the developer of the neighbouring Spinningfields business district is negotiating a deal which could see ITV retain a stake in the site in the short term.

Home to the current Coronation Street set, the site is now largely vacant following the transfer of staff to MediaCityUK. A new home for Coronation Street is under construction at MediaCityUK. Much of the development site has been unused since the closure of the Granada Studios Tour attraction.

It has been masterplanned for 1.2m sq ft of offices, 200,000 sq ft of retail and leisure space and more than 800 homes. Allied London is likely to produce its own plans in the event of a successful bid.

Led by Mike Ingall, Allied London's development of Spinningfields has transformed it into a key leisure and business destination in Manchester. The developer is understood to be preparing to submit plans for a 260,000 sq ft building on the site of Quay House, which overlooks Hardman Square. A 19-storey tower designed by architect Ian Simpson Architects is proposed in a joint development with freehold owner Manchester City Council.

Jones Lang LaSalle is representing ITV, with Allied London advised by OBI Property.

The site is expected to be sold for around £20m.

The disposal of the Granada site has been a long running saga, with speculation about numerous developers.

Neither ITV nor Allied London was available for comment.