Aviva Investors has agreed to invest an initial £300m (€337.9m) to develop a commercial mixed-use scheme in the northwest of England.

The £348bn asset management business of the insurer Aviva said it has agreed a long-term partnership with UK property developer Allied London to create Enterprise City at St. John’s in Manchester.

St. John’s is Manchester’s newest city centre neighbourhood for culture, enterprise and living, located around the former site of the Old Granada Studios. The wider St John’s neighbourhood development has a total investment value of over £1.25bn. 

Once completed, Enterprise City will comprise of over one million square feet commercial mixed-use space, including workspace, TV and film studios, hotel/leisure and various property infrastructure across 10 buildings.

Aviva Investors will initially commit £300m to the project. Its existing Manchester real estate portfolio stands at almost £450m.

Daniel McHugh, the managing director for real estate investments at Aviva Investors, said: “This deal is fully aligned with our focused investment strategy and demonstrates our scale and expertise to fulfil large conviction-led investments in high-quality real estate assets.

“This scheme will deliver modern, vibrant space for enterprise and creative industries to thrive. We look forward to working closely with Allied London, Manchester City Council and regional stakeholders over the coming years to deliver this significant new project that creates outstanding real estate and a compelling long-term opportunity for our investors.“

Michael Ingall, The CEO and owner of Allied London, said: “Enterprise City is a concept Allied London has envisioned from scratch. Within eighteen 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.