Aviva Investors, the global asset management business of Aviva, has agreed to forward fund the development of Eleven York Street in Manchester, having acquired the freehold interest in the site from Kier Property.
Financial details were not disclosed.
Kier Property, the development arm of the UK Kier Group, and Aviva Investors will work in partnership to deliver the 85,000 ft2 (7,900 m2) office development.
'York Street will represent our best specified office asset in Manchester and adds to a strong portfolio of space diversified by location and price point,' commented Christian Anderton, associate director at Aviva Investors.
'Manchester, which is characterised by a lack of new Grade A stock being delivered locally, forms a major part of our targeted cluster investment strategy. The marketing campaign for the scheme will launch imminently and break new ground in the viewing experience, enhanced by the building’s vertical design and resident lifestyle proposition.'
The building, which has been designed by architects practice, AHR, will provide Grade A office space over seven upper floors. In addition, the property will include two ground floor retail and leisure units totalling 5,274 ft2 (490 m2), as well as 23 basement car parking spaces.
The development, originally known as Oddfellows House, will be the first office-led development delivered in this traditional core area in over a decade.
'Eleven York Street is the only Grade A office building to be developed in the central core of Manchester since the last cycle,' said Will Lewis of OBI Property, which represented Aviva Investors on the transaction.
'We have carefully considered the development pipeline and due to its location and with diminishing levels of prime Grade A space, we are perfectly placed to a secure those occupiers looking for best in class accommodation and a long-term partner in Aviva Investors.'
The project, which is due to complete in the fourth quarter of 2019, will add to Aviva Investors’ portfolio in Manchester city centre, which includes 201 Deansgate and 55 Spring Gardens, both purchased in 2017. The investor said it expected to further build on this commitment in 2018.
