Hermes buys Co-op's stake in NOMA joint venture

Hermes Investment Management has acquired The Co-op Group’s stake in the NOMA joint venture.

In 2014, Hermes partnered Co-op to be equal partners in the £800m (€904m) redevelopment scheme in Manchester, North West England.

The joint venture was formed to bring forward new offices, homes, hotels, retail and leisure, as well as vibrant urban spaces and substantial new public realm on 20-acres of land.

The £30.8bn asset manager said today it will buy Co-op’s entire share interest in the sites and buildings within their NOMA joint venture.

No financial details were disclosed.

Hermes said existing tenants of NOMA, including employees of Co-op Insurance and Co-op Digital, both part of The Co-op Group – NOMA’s anchor tenant, and those of the independently owned Co-operative Bank, will remain at their current locations.

Chris Taylor the head of private markets at Hermes, said: “Hermes Investment Management’s vision for NOMA is to continue moving the development forward to create a leading commercial hub in Manchester’s city centre, which embraces the area’s past and heritage by featuring a unique mix of historic and new buildings.

“As part of our partnership with The Co-op Group, we have made strong progress at the scheme, including the delivery of improved infrastructure and enhanced public realm.”

Taylor added that Hermes now aims to continue this, in line with its ongoing commitment to placemaking and regeneration on a regional scale, ensuring that the development benefits the local community and economy in the long-term.

Stuart Hookins, the property strategy and development director at Co-op Group Property, said: “Having ensured the vision for NOMA will be achieved through the implementation of the approved Masterplan it is now appropriate for the project to be progressed by a specialist organisation, and allow us to focus on developing our core businesses.”