Ask is understood to be close to agreeing a deal with Bam to build 100 Embankment, the 166,000 sq ft sister office to 101 Embankment, with the contractor stepping in after the collapse of Carillion earlier this year.
Carillion was originally lined up as main contractor for the scheme, having delivered 101 Embankment at the start of 2017. However, it is understood Ask initiated contingency plans following Carillion’s profit warning last summer, and has been in discussions with Bam to deliver the project for a number of months.
Both parties are now hopeful of agreeing a deal in March, and are targeting a start on site date of late spring or early summer. The building’s GDV is £65m, and construction costs are understood to be around £40m.
Ask is yet to sign up tenants for the scheme but is keen to push on with construction owing to a shortage of Grade A new-build space in Manchester city centre. Cushman & Wakefield and CBRE are the retained agents for Embankment.
Plans for the project were submitted to Salford City Council in May 2016, and approved in July of that year.
The developer sold 101, which was also backed by Tristan Capital Partners and Salford City Council, to M&G Real Estate for £105m last summer. The building is fully let to insurance firm Swinton on a 10-year lease, with a deal agreed in October 2016, around three months before the building’s completion.
Bam confirmed it was in discussions with Ask when contacted by Place North West, but added “negotiations were ongoing”. Ask has been contacted for comment.