Henderson Global Investors is in advanced talks with Manchester City Council to confirm a redevelopment plan for the edge-of-town retail park in Great Ancoats.
A 140,000 sq ft supermarket occupied by one of the big four food retailers will anchor the scheme, alongside other retail and leisure space. Earlier plans for extensive residential as part of the development are likely to be dropped due to the poor market.
Katherine Pye, senior portfolio manager at Henderson, said a planning application will be submitted in the next six months once the developer and council have agreed the way forward.
The site fronts the main road on one side of the New Islington development by Urban Splash. Both Splash and urban regeneration company New East Manchester have been lobbying Henderson to open up views and access through the retail park to benefit New Islington. Pye confirmed that this was the approach being taken.
Early drawings published by Henderson show a landscaped area bisecting the development between the supermarket to the south and other units to the north.
Work on site is not expected to begin before 2012.
The retail park is owned by the Henderson UK Retail Warehouse Fund.
Henderson is advised by CB Richard Ellis and architects Lifschutz Davidson Sandilands.