Planning permission has been granted to AXA Real Estate Managers to construct a new office block in St Peters Square consisting of 12 floors and 108,000 square feet of office space, the Manchester Evening News has reported.
See the WeWork space at St Peter’s Square here
The new building is to replace Peterloo House, which is owned by the Co-operative Insurance Society. Construction will begin on the building once it has been 50 per cent let.
Dorrien Thomas, UK Head of Asset Management at AXA Real Estate, told the Manchester Evening News that the new building “will make it an ideal destination for local, national, or international businesses wanting office accommodation or a headquarters in Manchester.”
Meanwhile, a deal to fund a 350,000-square-foot office block at Spinningfields is believed to be close to completion. The GBP 165 million deal is under the auspices of developer Allied London.
See the Regus space at Spinningfields here
Union Investment Group, based in Germany, is to forward-purchase the development at 1 Hardman Square.
Chris Cheap, Director of Office Agency at commercial property management firm GVA, told the Manchester Evening News: “It’s great news that potential investors are looking to Manchester but if developers are looking for pre-lets on such huge developments, it may take some time to get construction off the ground.”
And Dr Brian Sloan, Head of Business and Economic Policy at Greater Manchester Chamber of Commerce told the newspaper: “We have been concerned that while there is no lack of office space in Manchester, it has been dispersed across the city, so this is excellent news.
“These developments will be ideal for large businesses looking to the city as their next location, generating investment and with it the potential of creating hundreds of new jobs.”
Editor’s notes: The plans for Peterloo House change significantly over the years. The property was purchased by Royal London Asset Management (RLAM) which, following its appraisal of the location, chose to create a hotel building for two operators Motel One and Staycity.
Working with Russell WBHO and Property Alliance Group, the demolition of the existing building took place between March and May 2018.
The new building, named 3 St Peter’s Square, was completed in 2022 and when it was completed was the largest purpose-built hotel in Manchester.
Motel One took the first eight floors with 328 hotel rooms and Staycity Aparthotels took floors nine to 20, providing 256 studios and one-bedroom units under its premium brand, Wilde Aparthotels.