Council could invest in Manchester Spinningfields property development

Manchester City Council is considering buying a stake in a planned property development in the city's Spinningfields districts in order to ensure it goes ahead.

Allied London intends to erect 580,000 square feet of office and retail real estate on sites at One and Two Hardman Street, and Two and Three Hardman Boulevard, but its plans have been held up by a lack of access to bank lending.

It has therefore asked the council to consider acquiring the freehold interests in these two sites and then lease them to Allied London, which the developer claims would enable the property development to be ready by 2015.

A report to the council's executive stated that taking such action now would "enable the momentum of Spinningfields and the pace of change in the city centre to be maintained".

It added: "These buildings would continue to enhance the city centre commercial property offer by providing buildings that cannot be provided elsewhere."

Latest figures from the Royal Institution of Chartered Surveyors indicate that demand for office space fell slightly in the north-west during the final quarter of last year, but there was an increase in demand for retail property in the region.

08/03/2010