Hermes Investment Management has acquired the Co-op’s stake in its NOMA joint venture, buying out the company’s 50% stake for an undisclosed sum.
The NOMA joint venture was formed in 2014, with the Co-op Group and Hermes holding a 50:50 stake.
Existing tenants at the development, including Co-op Insurance, Co-op Digital, and the Co-operative Bank, will all remain at their current locations.
Projects under construction at NOMA include the 36-storey Angel Gardens, a £154m private-rented project being built by Carillion for developer Moda Living.
Hanover House is also being refurbished into 110,000 sq ft of office space in a £34m project being delivered by contractor Russells.
Projects already completed at the site include One Angel Square, the Co-op’s HQ office development built by Bam, which was handed over in 2013. The 330,000 sq ft building was sold in the same year to Deutsche Bank and Chinese investors for £142m.
The CIS Tower, which formed part of the NOMA estate, was sold by the Co-op to Castlebrooke Investments for £66m in May this year.
Chris Taylor, head of private markets, Hermes Investment Management, said: “Hermes Investment Management’s vision for NOMA is to continue moving the development forward to create a leading commercial hub in Manchester’s city centre, which embraces the area’s past and heritage by featuring a unique mix of historic and new buildings.
“We hope to provide an attractive, well-connected and sustainable environment where people want to work, live and socialise.
“As part of our partnership with the Co-op Group, we have made strong progress at the scheme, including the delivery of improved infrastructure and enhanced public realm. We now aim to continue this, in line with our ongoing commitment to placemaking and regeneration on a regional scale, ensuring that the development benefits the local community and economy in the long-term.”
Stuart Hookins, property strategy and development director, Co-op Group Property, commented: “The Co-op has played a major part in the regeneration of Manchester over many decades and through the NOMA joint venture we have facilitated the transformation of the area near to Victoria Station.
“We remain the major occupier in the NOMA neighbourhood and are fully committed to its on-going development as we reinforced last month with the launch of The Federation, a new co-working community, designed to attract the North’s digital businesses and innovators.
“Having ensured the vision for NOMA will be achieved through the implementation of the approved Masterplan it is now appropriate for the project to be progressed by a specialist organisation, and allow us to focus on developing our core businesses.”
Colliers International advises the Co-op.