Co-op picks Hermes as NOMA partner
The Co-operative Group has selected Hermes Real Estate as its joint venture partner on the £800m NOMA scheme in Manchester city centre.
The financial terms of the deal, which has yet to complete, will remain confidential, the Co-operative said.
The first phase of development under the new JV is likely to be the 100,000 sq ft office refurbishment of the Hanover Building.
The Co-operative and Hermes Real Estate have exchanged contracts to become 50/50 partners on the development of the 20-acre mixed use scheme. Completion of the deal is expected in mid-May.
The partnership will develop the buildings and land within NOMA to deliver a new mixed use district in Manchester City Centre.
David Pringle, director of NOMA, said: "This represents a great opportunity to bring together two like-minded businesses that have a commitment to responsible, sustainable property development – an approach which sits at the heart of the NOMA scheme.
"Together The Co-operative Group and Hermes Real Estate have a shared belief in what NOMA can deliver and over the next 10 years we plan to create a new neighbourhood, designed to meet the needs and aspirations of modern businesses with a real community at its heart.
"It is our intention to build new offices, homes, shops, hotels, restaurants and cafés, and to refurbish several iconic listed buildings as well as creating contemporary outdoor squares and spaces."
Chris Taylor, chief executive of Hermes Real Estate, added: "This is consistent with our UK strategy of investing in commanding sites within major urban areas that combine the benefits of improved infrastructure, regeneration, enhanced public realm, proximity to major retail and leisure facilities and which, ultimately, provide a sustainable place for people to work and live.
"NOMA is an exciting growth opportunity within a dynamic city and has similar sustainable development attributes to our recent investments in Paradise Circus, Birmingham and King's Cross, London."
Colliers represented the Co-operative Group, and JLL acted for Hermes Real Estate.
I wonder if the Mayor Ian Stewart still believes it was a good idea to speculate tax payers money, taking an eight year lease on Greengate to allow the developers to start on site? Build and the tenants will come – look at Piccadilly Place 7 years on.
By Worried from Salford