German fund to back new Spinningfields block

Allied London is reportedly in advanced talks with a Frankfurt-based fund manager over obtaining £165m for 1 Hardman Square in Spinningfields, Manchester.

In Property Week, it claims Union Investment Group would provide development finance for the 350,000 sq ft office block, designed by Foster & Partners, and in return would receive a discount on its end value, which could be £180m if fully let.

A deal between Union and Allied London for the forward-purchase of the office block, before a pre-let has been agreed, would be the first speculative office development deal in the North West since before the downturn.

Allied London could not immediately comment when contacted by Place.