AXA gets go-ahead for EUR 57m development in Manchester

AXA Real Estate has received planning consent for a £50 mln (EUR 57 mln) office project in St Peter's Square, Manchester. The existing 3,700 m² property, Peterloo House, is managed by AXA Real Estate on behalf of the owner, Manchester-based insurance firm the Co-operative Insurance Society Ltd (CIS).

AXA Real Estate intends to replace the 1960s-era seven-story building with a new 12-storey scheme offering 10,000 m² of office space. The new building, which has been designed by architects Squire and Partners, will provide accommodation for around 800 employees.

Construction is expected to commence once around 50% of the building has been pre-let. WHR Property Consultants and CBRE have been appointed as agents to secure prospective tenants. The new building has been designed to highly sustainable standards and will target a BREEAM 'Excellent' rating. It will also feature a Palazzo-style façade, incorporating copper trimmings to keeping it in line with the surrounding architecture.

Development is becoming an increasing focus for AXA Real Estate as a way of diversifying its strategy in a market where core investments are thin on the ground, CEO Pierre Vaquier told PropertyEU in an interview published this week.

Vaquier said AXA Group had a strong desire to diversify its EUR 21 bn real estate portfolio ahead of the introduction of new capital requirements under Solvency II. 'AXA doesn't want to have all its eggs in the same basket. The only way to make opportunistic investments is by developing them yourself. We don't see the banks making any moves at the moment to re-price their assets which are under water.'

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