Bam will look to start work on 100 Embankment in the coming weeks after being confirmed as Carillion’s replacement on the £65m, 166,000 sq ft office in Salford.
Place North West first revealed Bam was in talks to deliver the office for developer Ask Real Estate last month, and at the time both parties said they were hopeful of agreeing a deal in March.
Carillion had been previously lined up as main contractor, having delivered 100’s sister building 101 Embankment, but Ask initiated discussions with Bam last year following Carillion’s profit warning, and a deal moved forward following the contractor’s collapse in January this year.
Ask and its joint venture partners Tristan Capital Partners and the Richardson Family are now planning to start work in the coming weeks with a view to completing the scheme in early 2020.
The building’s GDV is £65m, and construction costs are understood to be around £40m. A forward funding package for the scheme was agreed for the project earlier this month.
It is being developed speculatively, with no occupiers agreed as yet. CBRE and Cushman & Wakefield are the retained agents for Embankment.
The council previously took an underlying lease at 101 Embankment, guaranteeing income on 50% of the space for the first 10 years.
The whole 165,000 sq ft building was let in full to Swinton Insurance before construction was completed and was subsequently sold last year, with M&G Real Estate paying £105m at a yield of 5.3%.
Mayor of Salford Paul Dennett said: “The announcement that Bam is in place to drive forward the delivery of 100 Embankment means we can start to focus on securing an occupier which will deliver hundreds of additional jobs which is great news for the city of Salford.”
John Hughes, managing director of Ask added: “We are delighted to be working with Bam who have extensive experience and are well respected in the industry. The fact that they have been able to meet our complex requirements within such a short space of time is testament to their solid credentials. “