Patrizia partners with GMPVF to deliver Manchester project

German asset manager Patrizia Immobilien has formed a joint venture with the Greater Manchester Property Venture Fund (GMPVF) to deliver a 173,600 sq ft (16,127 m2) office building at First Street, Manchester.

The 20-acre site will see the development of seven-storey building office building which has been partially pre-let to Gazprom for 39,570 sq ft with a further option on 11,590 sq ft. The project has a gross development value of £75 mln (€99 mln).

Patrizia is development manager on the scheme while Carillion is building contractor, with delivery expected in 2017.

GMPVF is a £400 mln property development fund for the north west of England. It forms part of the GM Pension Fund, the largest local authority Pension Fund in England with assets in excess of £18 bn.

Patrizia acquired First Street, a mixed use scheme in central Manchester, in May 2015 and has been actively managing the site, along with local partner, Ask Developments. First Street already comprises a180,000 sq ft office building which is fully let, a 208-bed hotel, bars and restaurants, parking and substantial public space.

'Little more than six months have passed since taking control of First Street and we have been making great strides, with this latest phase a testament to our work on site,' said James Muir, managing director Patrizia UK & Ireland. 'The transaction shows that demand is there from occupiers and that investors are keen to back vibrant schemes such as First Street. At the same time, it highlights Patrizia's ability to partner with a UK pension fund, and how we are able to use our balance sheet to create opportunities for co-investing with institutional clients.'

JLL advised PAT, while Bilfinger GVA acted for GMPVF.