Cole Waterhouse and Peveril Securities’ hope of bringing forward up to 275,000 sq ft of warehousing close to the AJ Bell Stadium have moved closer after the council approved their bid to buy the site.
Place North West understands that the site is now under offer to a joint venture between the two developers, following strong competition for the asset in a market hamstrung by lack of supply of industrial property in good locations.
The stadium and its surrounds sit between the A57 and Manchester Ship Canal, close to the M60. Although the land is owned by a vehicle of landowner Peel Group called the City of Salford Community Stadium, the city council holds a charge over the site dating back to when it was first developed.
According to documents prepared for a property and regeneration briefing of Salford City Council this week, permission was sought to approve the freehold disposal of three plots totalling 14.5 acres, and remove a restrictive covenant. That has now been rubberstamped.
The charge was put in place as security against a loan granted by the council in 2010 in the stadium’s development phase, intended to give control over the type of development coming forward at the site, according to council documents. Previous disposals have been made to pub owner Greene King and supermarket chain Aldi, and other sites close to the stadium were restricted to leisure and retail development.
Following council approval to sell the plot to a joint venture between Cole Waterhouse and Peveril Securities, the way is clear for the deal with the developers to complete, and for the restrictive covenant to be removed meaning the the JV can push ahead with its plans to redevelop the land into employment space.
The Salford council report suggests that the JV is seeking to deliver a scheme of four units totalling up to 275,000 sq ft. However, Place North West understands that a plan comprising two buildings is more likely. The site is made up of Plots 5A, 5B and 9 within the wider holding.
Still a relatively young business, Cole Waterhouse has mostly built up its reputation thus far in the residential sector, with projects including No1 Old Trafford.
The firm is, however, already working in industrial with Peveril Securities on a project at Lymedale Business Park in Newcastle-under-Lyme, where the partners aim to turn a disused 16-acre brownfield site, formerly home to Stoke speedway, into the 300,000 sq ft Novus Point.
All parties declined to comment.