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Commercial Property Register

September - December 2017

Sir Richard Leese, Leader of Manchester City

Council, said that Greater Manchester and the

North West is competing on an international

stage. He added that th

e airp

ort is helping by

attracting inward and outward investment.

He said that the airport expansion will be the

“biggest single construction project that Greater

Manchester has ever seen. It provides jobs for

20,000 people on site and a further 25,000


Charlie Cornish, Chief Executive of the airport,

also stressed the economic importance of the

airport to the region, saying that “it already serves

more than 70 airlines and 210 destinations, brings

£1.8 billion to the regional economy every year

and is the only UK airport outside London with

direct routes to Miami, Hong Kong, Singapore,

Atlanta, Washington and Boston.”

A mark of the attractions of Global Logistics as one of the prime logistics locations in the North

West is that it has pulled in such blue chip companies as Amazon and DHL. A vital part of the

investment in the airport is the construction of the £15 million Enterprise Way which is due for

completion early next year.

The road will connect offices and hotel developments within Airport City North to the rest of the site

and the wide transport network. When the whole project is completed it will have 464,500 sq metres

(5 million sq ft) of premium office space, hotels, advanced manufacturing, logistics and ancillary retail.

One interesting part of Airport City is the creation of a new social destination which will host com-

munity and networking events alongside industry debates. It is located in Manchester Airport Transport


To cater for the increased numbers of people using and working at the airport there will be at least

50 food and drink outlets.

Charlie Cornish emphasised how important the construction of HS2 and HS3 fast railway lines were to

the airport and its key role in the success of the Northern Powerhouse.






Like the rest of the UK, the

North West has been affected

by the slowing economy and

the uncertainty over Brexit.

What that has brought is a

steady improvement in the

market rather than a heady


However, this is only part of

the story because the long-term

prospect are what is worth

concentrating on, which will

add to Manchester’s increased

role as a global business centre.

Transport improvements are

at the heart of the prospects for

economic growth in the region

and centre around the arrival

of the HS2 line from London

but, more importantly for the

region, the HS3 route linking

the major northern cities.

Without that, the prospect for

the Northern Powerhouse is


It also helps the ambitious

growth of Manchester Airport

which has a £1 billion

investment programme and

rapidly expanding Airport City

with its range of commercial


Underpinning the office

market is the performance in

central Manchester with four

years of strong take-up. The

region is also being helped


the improvement in Liverpool

and the transformation being

engineered by Peel.

What matters as much

as anything is the ability of

these cities to offer commercial

accommodation that fits the

needs of modern business,

which it is reasonable to say is

being achieved.

An indication of the current

confident mood in Manchester is

that th big NOMA development

is moving along with a contractor

appointed f r the £34 million

refurbishment of Hanover, a

city centre warehouse.

It is being remodelled to provide

8,434 sq.metres (91,000


) of

Grade A of

fices and 1,672 sq.metr




) of retail and leisure.

The developers, Hermes and the

C -op, hope to attrac t chnology

and creative companies to the property

in the emerging district for inn vative

businesses. Ben Tolhurst of Hermes

said: “Hanover will offer prime

heritage space that will appeal to

businesses wanting the connectivity

to Victoria station and the amenities

offered by the Northern Quarter”.

On the move


One of the more interesting

deals in Manchester brought

the largest Indian bicycle maker

to the city to open a £2 million

design centre.

Hero Cycles produces one in 20

of all the bikes produced in the world

and is now likely to open a production

plant in the city, which is well known

for being the home of British Cycling.

Ideally, Hero would like to supply its

top bikes to the UK team.

Pankaj Munjal, Hero’s Chairman,

pointed to Manchester’s history of

innovation, citing computers and

graphene as examples, as another

reason for the move, together with

the large student population.

Hero already owns Avocet, a

Manchester based bike designer that




If any company has influenced

the life of a major city, then

surely it has to be Peel with its

huge scheme for Liverpool

following on from the magic

it has created in Salford.

This is evident from JLL whose

Stephen Hogg said: “Growth in

Liverpool, in part led by

regeneration schemes such as

Peel’s £5.5 billion Liverpool Waters

and the new £1 billion knowledge

quarter, is drawing further interest

from institutional investors”.

Su h i the success of the office

ma ket that HMRC’s leasi

f the

32,515 sq.metres (350,000



Indi Building, which is wned

by Sh lborn Asset M nagement,

has cr a ed something of a

supply crisis.

The problem has been caused

by the city’s success in the past year

which has taken so much out of

the market through lettings and

conversion to residential while

developers sat on their hands so

that a shortage became inevitable.

Noting the shortage of available

space, Ian Steele of GVA said:

“Given the current levels of

demand and absorption rates, it is

likely that this supply will diminish

within the next 6 to 12 months,

leaving t city without any

buildings that can offer occupiers

large Grade A floorplates”.

He added that this is likely to

reduc future levels of dema d as

well as Liverpool’s ability to at ract

large scale inward investment.

One major scheme going ahead

is in Lime Street, with ISG set to

deliver the £39 million mixed use

project for a partnership of Neptune

Developments, Liverpool City

Council and Sigma Capital on a site

owned by the Curlew Student Trust.

The scheme will have 5 retail

u its, a 10 stor y building of

student accomm dation with 412

units and a Premier Inn with 101

bedrooms. Andy McLind n of ISG

mmented: “T e Lim Street area

has been in desperat need of a

catalyst scheme to revitalise this

key thoroughfare near the centre

of the city. The mixed use scheme

represents the first phase of the

knowledge quarter master plan

and is a hugely important regional

project that will enhance the

ch racter and aspiration of this

key g teway in t city”.





Through boom and bust,

Manchester continues to

perform as it follows the long

settled path of being a

world-class city to match its

soccer teams and music scene.

The ambition is being stepped

up at MIPIM with an enlarged

corporate participation in a pavilion

on the Croissete. The market is also

holding up in all areas with the city

centre notching up a big take up figure again and steady

performances in Warrington, south Manchester and Salford Quays

to complete the picture.

The outlook for new development in the city centre is favourable,

particularly because of a shortage of prim st ck and further indicated

by the forward momentum of the major NOMA scheme by the

Co-op and Hermes. Bew development is also occurring elsewhere in

the region, such as another town centre project in Rochdale.

An important part of the equation is that former Chancellor of

the Exchequer, George Osborne’s enthusiasm for the Northern

Powerhouse is continuing with sufficient energy behind the

campaign to make it work.

The other important dimension is that Liverpool appears to have

broken out of the decades long cycle of decline and has lots of

positive things happening in the economy and property industry.

The fact that it has a growing city centre population of young

professionals surely says something about its attr ctions.



Frankel Brow

are hosting an open

day on Friday 17th March to

showcase 910 Birch ood Boulevard

Busine s Park, th ir latest

refurbishment of an 8,500


detached office building in

Birchwood, Warrington and also to

discuss further plans for Birchwood

Boulevard Business Park. All are

welcome - contact the agents,

BE Group or Knight Frank.

NW Editorial March 2017:Layout 1 6/3/17 16:04 Page 4