Real estate investment company Tristan Capital Partners has agreed to pay £20m to kick-start the second phase of the 3.2m sq ft Greengate Embankment project, in a joint venture with Ask Real Estate and contractor Carillion.
Former partner Network Rail will be bought out of the scheme, with Tristan taking a 75% equity stake and Ask and Carillion splitting the remaining 25%.
Work is due to start on site in June on the 172,640 sq ft building, 101 Embankment, scheduled for completion in spring 2016. The development includes a multi-storey car park for 445 vehicles, which has been pre-leased to Q-Park on a 35-year lease.
The public realm first phase of the scheme was completed in March 2013.
Salford City Council has agreed a non-occupational eight-year lease on the entirety of the office building, with the first two years rent-free. It will surrender the lease if tenants are secured. The building will be available at a quoting rent of £30/sq ft.
Peter Mather, managing director of Tristan, said: "The lease from Salford City Council along with that from Q-Park has enabled the joint venture to secure construction finance to kick-start this exciting development opportunity. The Embankment development will deliver Grade A space to the Manchester office market and create a corporate centre with Salford at a time when there is little new supply coming on-stream."
John Hughes, managing director of Ask Real Estate, said; "We have been working closely with our joint venture partners to deliver the shared ambitions for this landmark site and with this extremely positive news that the scheme is now fully funded, we can state with confidence that we will be on site in June 2014."
Terms have been agreed with German bank Helaba which secures financing for the office and car park development. The site also has planning permission for a second phase which comprises a further 150,000 sq ft of Grade A office space.
Masterplanning for the mixed-use Greengate development began in 2004 but the scheme stalled during the recession.
DTZ is the sole letting agent. Tristan is a London-based fund manager with €4bn of European assets.