Greater Manchester Property Venture Fund has started the formal process of recruiting a joint venture partner for the redevelopment of the Island Site on John Dalton Street in Manchester city centre, which was acquired in 2011.
The three existing buildings – Grange House, Ridgefield and Old Colony House, totalling 65,000 sq ft – would be demolished and a new building created which could hold more than 100,000 sq ft of offices, with floorplates of about 10,000 sq ft, above leisure and retail on the ground floor.
The development contest is expected to attract familiar names in the city such as Capital & Centric, Ask Real Estate and Muse Developments as well as London developers targeting Manchester as they struggle to find viable schemes among the higher values of the capital.
Most of the existing office space has been vacated and restaurant operators including Living Ventures’ Grill on the Allery and Italian restaurant Salvis have been served notice. Pizza Express closed last year. Full vacant possession is expected in 2018.
The development partner will provide development management services and contribute equity to the joint venture. Debt finance will be provided by GMPVF, part of Greater Manchester Pension Fund for local authority staff.
The model is expected to be similar to that used by GMPVF for the successful development of One St Peter’s Square in joint venture with Argent before the developer exited Manchester.
The Island Site JV will appoint architects and draw up detailed plans before submitting a planning application. The delivery date is scheduled for 2020 or 2021.
Between five and 10 developers are expected to be invited to submit detailed bids.
Prospective bidders have until midday on 28 March to express their interest.
GVA advises GMPVF.