A £120 million loan has been secured by Allied London to bring forward the construction of a 340,000 square foot office, it has been reported. No. 1 Spinningfields in Manchester completes the £1.6 billion estate, aptly dubbed ‘The Canary Wharf of the North’.
Lloyds Bank is providing £100 million of the loan, while £8 million will come from real estate company, Pramerica. The final £12 million is being provided by the North West Evergreen Fund as a mezzanine loan. The loans are said to have a 6.5 percent interest rate and construction of the building is set to be completed by 2017.
Features of Spinningfields are set to include four restaurants, an open plan airport-style business lounge and a self-contained “events box” for hosting seminars and board meetings. It will be the tallest building to be constructed in Manchester since the Co-operative Insurance Tower in 1962 and will also feature a roof garden.
The only pre-let tenant signed up so far is accountants PwC, who will be taking 50,000 square feet of the total amount, leaving 290,000 square feet available in the 20 storey office building. Iwan Griffiths, PwC’s Northwest chairman, said: “It is an exciting time for us and for Manchester, with buoyancy in the market and the presence of cranes in the skyline indicating resurgence in development.”
According to research from the property agent Colliers, northwest sales of offices, shops and warehouses are expected to reach £746 million in the first quarter of 2015 – a marked increase of 85 percent on last year’s figures.
Walter Boettcher, of Colliers, said: “Increased government impetus on promoting cities such as Liverpool and Manchester may be encouraging institutional and other investors . . . to make bigger commitments to the Northwest.”
Allied London is now looking towards converting the former Grandad TV studios, including the Corontation Street set, into a leisure, housing and commercial district.