Dublin-based Walls Developments has selected WHR Property Consultants and CBRE to dispose of the 50,000 sq ft office building, London Scottish House, on Mount Street opposite Manchester Central conference centre.
The instruction is part of the debt disposal programme by Ireland's National Asset Management Agency. No guide price has been published.
The site had planning consent a scheme of 220,000-260,000 sq ft, but "a scheme of this size is over-optimistic in the current market", according to WHR partner Mike Hawkins.
Hawkins added: "There are potentially two scenarios: a complete refurbishment and extension of up to 100,000 sq ft, which could be brought to the market within 12 to 15 months, or a demolition and new-build scheme of between 160,000-180,000 sq ft."
Hawkins: "Offering uninterrupted floor plates of up to 12,000 sq ft, this unrivalled opportunity will add to the regeneration and rejuvenation of St Peter's Square, the real heart of Manchester.
"London Scottish House represents one of the most significant redevelopment sites within this area. With superb amenities, excellent transport links, this building has the potential to be one of Manchester's iconic landmarks.
"This is a rare opportunity for a forward-thinking fund or developer to acquire one of the most significant investments with a refurbishment or redevelopment opportunity in Manchester City Centre, completing the renaissance of St Peter's Square and providing the business community with much-needed Grade-A office space."
No date has been set yet for a deadline for bids.