Aviva Investors, the global asset management business of Aviva, has agreed a long-term partnership with UK investor-developer Allied London to develop over 1 million sq ft of mixed-use space at St John’s, Manchester’s newest city-centre neighbourhood.
The project, to be known as Enterprise City, is part of the wider St John’s neighbourhood development with a total investment value of over £1.25 bn (€1.42 bn). It will comprise a total of 10 buildings including workspace, TV and film studios, hotel/leisure and various property infrastructure.
The development has attracted technology giant Booking.com, which will be the anchor tenant at Enterprise City with 220,000 sq ft (20,450 m2) of space.
Aviva Investors will initially commit £300 mln to the project, which will be a key new addition to its existing Manchester real estate portfolio of almost £450 mln.
Daniel McHugh, managing director of real estate investments at Aviva Investors, said: 'This deal is fully aligned with our focussed investment strategy and demonstrates our scale and expertise to fulfil large conviction-led investments in high-quality real estate assets.'
Michael Ingall, Allied London owner and Chief Executive, added: 'Enterprise City is a concept Allied London has envisioned from scratch. Within 18 months we have created something of significant value and importance for both Manchester’s business community and the wider north-west region. The transformation, re-adaption of old disused commercial buildings and a dynamic masterplan for new buildings was the catalyst for creating a new enterprise community for use by today’s modern industry.'
Manchester City Council approved planning permission for the site, formerly known as Old Granada Studio, back in May.
Aviva Investors was advised by CBRE.