The supermarket group now occupies close to 55,000 sq ft at Arndale House, as M&G Real Estate and intu, joint owners of Manchester Arndale, confirmed the company’s expansion on a five-year lease.
Sainsbury’s, represented by TSG Property Consultants, has agreed terms for a further floor at Arndale House, giving it five full storeys at the building, where around 70,000 sq ft remains. The deal was agreed at £17.50 per sq ft, Place North West understands.
Scott Linard, director of asset management at M&G Real Estate, said: “The decision of Sainsbury’s to take an additional floor at Arndale House is a testament to the building’s excellent location and superb transport links.
“The Manchester office market currently offers a limited supply of Grade A office stock. This is creating an increasing demand for new space but the refurbishment we are planning will align closely with the city’s occupier needs.”
CBRE and Savills are joint agents on the building. Jonathan Cook, associate director at CBRE, said: “The planned refurbishment that will follow will reposition the building as one of the most prominent office towers in the city, with an occupancy ratio of 1:6 sq m and very efficient floorplates, on-site amenity that cannot be beaten, and unrivalled views of Greater Manchester, all at a very competitive rent.”
A proposed merger between Sainsbury’s and Asda is still on the table, being examined by the Competition and Markets Authority.