English Cities Fund has announced that it has let 157,000 sq ft at New Bailey, Salford, to HM Revenue & Customs. HMRC will relocate to the third office at New Bailey, taking the entire building on a 25-year lease.
HMRC was previously rumoured to be looking at Two New Bailey, an office which is currently on site, with Salford City Council underwriting the scheme by taking a 25-year lease. Aviva was announced as the forward funder last week.
ECf is developing New Bailey, and is a joint venture between Muse Developments, Legal & General and Homes England.
Phil Mayall, development director at the English Cities Fund, said: “This is another giant step forward for the New Bailey masterplan and for Salford. The fact that the Government has chosen to relocate its employees to the scheme, is testament to the offering that we have created through our partnership with Salford City Council, to make New Bailey a place where people really want to live and do business.”
Chris Mulcahy, director of office agency at JLL, who advised HMRC, said: “We undertook an extensive search taking in to account wide ranging factors including cost efficiency. It was testament to the quality office schemes put forward by experienced developers that such a broad range of well-located sites were considered. New Bailey was chosen largely for its accessibility, deliverability, being close to Salford Central and on the doorstep of a variety of amenity.
“This deal is a significant milestone for Manchester. Not only is it one of the largest in the city for over a decade it’s also one of the biggest regional office lettings completed in the first three months of this year.”
Three New Bailey will be immediately next to Salford Central station and will front a large new area of public realm. The seven-storey scheme is due to start on site in early 2019, with completion due in early 2021. The block is designed by Make Architects.
The English Cities Fund’s first office scheme, One New Bailey, is now complete and home to businesses including Freshfields Bruckhaus Deringer and WHIreland, whilst Two New Bailey Square is due for completion by the end of 2019.
JLL and Cushman and Wakefield are joint letting agents for the New Bailey scheme.