Forward funding confirmed at 100 Embankment

Ask Real Estate, Tristan and the Richardson family have signed a forward funding agreement with Salford City Council, which will see the joint venture partners develop 100 Embankment at Greengate.

The project is scheduled for delivery in early 2020.

The nine-storey 166,000 sq ft office building will sit alongside its sister building, 101 Embankment, which is now the headquarters of Swinton Insurance Group.

News emerged last summer that the council was preparing to forward-fund development at 100 Embankment and underwrite the next office block at English Cities Fund’s New Bailey with a combined £200m investment over 25 years.

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 this summer, with M&G Real Estate paying £105m at a yield of 5.3%.

In February, Place North West revealed that Bam was being lined up to build 100 Embankment, stepping in after the collapse of Carillion. While the appointment is yet to be confirmed, a start on site was expected by the summer.

Ask and London-based real estate investor Tristan developed the first phase of Embankment, and Richardson has now come on board after acquiring a 66% stake in Ask earlier this year.

Cushman & Wakefield and CBRE are the retained agents for Embankment. The office is being built speculatively and there are no occupiers as yet; Amazon has previously been rumoured to be looking at the site, as well as Ask’s No8 First Street.

John Hughes, managing director of Ask Real Estate, said: “Our commitment to working in collaboration with both our public and private sector partners has resulted in the creation of a new prominent location for business, helping Salford City Council to meet their ambitions to bring high quality office accommodation with unrivalled amenity and public transport connections to this part of Greengate.”

100 and 101 Embankment stands above a 442-space underground car park operated by Q-Park, and is fringed by retail and workspace units.