TfGM fights off resi developers for prominent Manchester site
Transport for Greater Manchester has acquired Downing Street Industrial Estate in Ardwick for around £15m, according to market sources.
AXA IM put the 74,000 sq ft complex up for sale last year seeking offers of £11m.
The site is located between two of Manchester’s largest regeneration schemes – Mayfield and ID Manchester – and would lend itself to redevelopment into a high-density residential cluster, according to marketing materials.
The site could accommodate a 46-storey tower as part of an 818-home development, according to a massing study conducted by Matt Brook Architects.
However, Place North West understands that the TfGM has fought off competition from residential developers with a bid significantly higher than the £11m asking price.
A sale at asking price would have reflected a net initial yield of 4.27%, which is in line with other recent industrial sales, including Mileway’s £21m acquisition of the 141,000 sq ft Eagle Park in Warrington.
However, the roughly £15m, TfGM has reportedly paid for Downing Street Industrial Estate reflects a NIY of close to 3%.
It is unclear what TfGM plans to do with the site but it is understood the acquisition is related to the Bee Network.
TfGM was contacted for comment. AXA IM declined to comment.
CBRE advised AXA on the sale. JLL advised TfGM.
At present, the industrial scheme is home to Royal Mail, Speedy Asset Services, and Clear Channel. It generates a passing rent of £500,000 a year. Vacant possession could be achieved in early 2028.