Co-op names partner for £800m city centre regen scheme
Published by Jon Land for 24dash.com in Housing and also in Development, Finance
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The Co-operative Group has named Hermes Real Estate as its joint venture partner for the UK’s biggest regional redevelopment project - the £800 million NOMA scheme in Manchester City Centre.
The firms have exchanged contracts to become 50/50 partners on the development of the 20-acre mixed use scheme. Completion of the deal is expected in mid-May.
The partnership will develop the buildings and land within NOMA to deliver a new mixed use district in the city centre.
David Pringle, director of NOMA, said: “This represents a great opportunity to bring together two like-minded businesses that have a commitment to responsible, sustainable property development – an approach which sits at the heart of the NOMA scheme.
“Together The Co-operative Group and Hermes Real Estate have a shared belief in what NOMA can deliver and over the next 10 years we plan to create a new neighbourhood, designed to meet the needs and aspirations of modern businesses with a real community at its heart.
“It is our intention to build new offices, homes, shops, hotels, restaurants and cafés, and to refurbish several iconic listed buildings as well as creating contemporary outdoor squares and spaces.”
The Co-operative has said that the actual fiscal terms of the deal must remain confidential.
Chris Taylor, CEO of Hermes Real Estate, added: “We are delighted to enter into this strategic land partnership with The Co-operative Group.
"This is consistent with our UK strategy of investing in commanding sites within major urban areas that combine the benefits of improved infrastructure, regeneration, enhanced public realm, proximity to major retail and leisure facilities and which, ultimately, provide a sustainable place for people to work and live.
“NOMA is an exciting growth opportunity within a dynamic city and has similar sustainable development attributes to our recent investments in Paradise Circus, Birmingham and King’s Cross, London.”
Mark Hayward, partner for Addleshaw Goddard, the law firm acting for NOMA, said: "This 20-acre £800m scheme promises to be a game changer for Manchester's continuing urban re-invention as an international city for business and investment. "
"We are delighted to have played a part in bringing together two organisations that share the same vision for responsible sustainable mixed-use city centre development, and who together, will unlock real long-term value for investors, residents and business.”