11 York Street November 2016

Kier buys, sells and builds on Fountain Street

Kier Property plans to start construction by next summer on an 80,000 sq ft office in Manchester city centre, redeveloping Oddfellows House which it bought from Aberdeen Asset Management earlier this year.

Planning permission is already in place for the demolition and re-build of the island site on the corner of Fountain Street and York Street. Aberdeen gained consent in October 2015 for an eight-storey office designed by AHR Architects, called Eleven York Street.

The floorplates would be up to 11,600 sq ft, and 5,200 sq ft of retail will be delivered on the ground floor.

Kier confirmed that it would be delivering the project as approved, and said it would be spending the next six months finalising the design and discharging planning conditions before beginning construction.

Continuing its activity on Fountain Street, Kier has completed the sale-and-leaseback of 81 Fountain Street to real estate investment company Aprirose.

Kier bought the 40,100 sq ft vacant office from Mercer Real Estate in September, when a full refurbishment programme was already underway. Kier is set to occupy five floors of the building with a shared service centre, leaving 14,000 sq ft available. The refurbishment is due to complete in December.

The purchase price for 82 Fountain Street was undisclosed, but Kier is understood to have made a profit running to millions of pounds.

Tom Gilman, managing director for Kier Property in the North, said: “These two deals demonstrate the high demand for office space in the heart of Manchester, and we are excited to be involved in the transformation of the central business district. We have been looking for the right opportunity for some time and Eleven York Street provides us with a perfect platform to break into Manchester and expand our already successful northern operations.”

CBRE advised Kier on the acquisition of Eleven York Street, and Colliers International acted for Aberdeen Asset Management.

CBRE acted for Kier on the purchase and onward sale-and-leaseback of 81 Fountain Street, and is the retained letting agent.

CBRE and Colliers are joint agents for Eleven York Street.

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