No.1 Spinningfields ‘nearing full house of occupiers’, says Allied London
The developer claims that its 300,000 sq ft office currently under construction in Manchester is 90% prelet, with interest in the building understood to include American shared workspace company WeWork.
Prelet deals announced so far are to accountant PwC for 50,000 sq ft, and law firms Squire Patton Boggs for 27,500 sq ft, and Browne Jacobson at 11,055 sq ft. London-based D&D will operate a 9,500 sq ft restaurant and garden terrace on the top floor. There will be a 5,700 sq ft M&S foodhall on the ground floor, and a 10,000 sq ft business lounge in the building, run by Allied London.
These confirmed deals account for just over a third of the building, at 113,700 sq ft.
While Allied London declined to comment on the names of other tenants, the developer is rumoured to be in talks with a range of companies.
These include American coworking company WeWork, which is in talks to take 50,000 sq ft in the building, as one of potentially three offices it plans to establish in Manchester.
Law firm Irwin Mitchell, previously thought to be moving from Bauhaus to One St Peter’s Square, is understood to be under offer for around 22,000 sq ft at No.1 Spinningfields.
Meanwhile, nearby Spinningfields tenant Oliver James Associates is said to be looking to relocate from Vantage Point, with a requirement of up to 11,000 sq ft.
If all rumours prove true, it would take occupancy to 196,700 sq ft, just under 60% let. However, according to Spinningfields estates director Chris Reay, current interest takes occupation to around 90%.
The high level of deals makes the building attractive for Allied London to sell. The developer is usually quick to offload commercial assets once they reach 70% prelet.
Last year it sold the fully prelet XYZ building to Hamburg-based Union Investment for £85m, reflecting a net initial yield of sub-5%. If brought to market, No.1 Spinningfields would command an asking price of £160m to £180m, making it one of the most valuable offices in the city.
No.1 Spinningfields topped out this week, reaching 92 metres, or 19 storeys, now the third tallest commercial tower in the city. The scheme is due to complete at the end of June, when it will be handed over to tenants for fit out.
Michael Ingall, chief executive of Allied London, said: “This is the final major development at Spinningfields. I want to congratulate BAM for the way they have gone about the construction of this building. We are now very firmly sprinting towards the finishing line of delivering what will be Manchester’s most outstanding commercial working environment.
“With nearly a full house of occupiers, we are now working on the development of the amenity areas in partnership with our hospitality and restaurant partners. We will reveal our designs and detail of this in the spring.”
The agent at No.1 Spinningfields is OBI Property.
Watch the No. 1 Spinningfields time lapse: http://no1spinningfields.com/design/timelapse/