Buyer deposits repaid as Manchester’s tallest tower axed

Aaron Morby 6 months ago
Share

The developer behind the high-rise St. Johns development in Manchester has scrapped plans to build a 54-storey tower on the former site of Granada Studios.

Developer Manchester Quays, formed from a joint venture of Allied London and Manchester City Council, said the flagship building would be rethought because of unresolved development issues.

A neighbouring project of 65 apartments at South Village has also been pulled as the developer reconsiders the residential element of the £1bn St John’s scheme.

It is understood the developer has struggled with off-plan sales and also finding a hotel operator for the lower part of the main St John’s Place tower.

Contractor Lendlease is presently on site and will continue with piling and basement excavation for other major elements of the site including the Manchester Goods Yard and tower 1 of the Nickle and Dime twin 36-storey build to rent towers.

The decision to recast the for sale flats element of the mixed-use scheme is the first wobble in the booming Manchester high-rise flats for sale market.

At the South Village part of the scheme, Manchester Quays will focus instead on expanding its new TV / Film Studio business into the existing complex

A spokesperson for Manchester Quays, said: “St. John’s is a complex development due to the interaction between sites and the mixed use of the masterplan.

“There have been a number of development issues around the masterplan as a whole, but also interface issues between uses and sites that together have culminated in an uncertain programme for the some of the residential elements.

Developer goes back to the drawing board on flats for sale element of Manchester’s landmark St John’s scheme

“Our priority at this stage of the cycle is to create certainty around our work and build out our plans”.

He added: “We remain focussed on the commercial and cultural elements of the plan and, while we believe a residential element is important to our plans, we have prioritised where we have certainty at Manchester Goods Yard, St. John’s Place, ABC, Bonded Warehouse, Old Granada Studios and the Factory. All these elements of the development are on site and progressing quickly”.

Work on Manchester Goods Yard commercial buildings unaffected by the decision

“St. John’s is an exciting and important development and as we develop, we remain focused on creating certainty and take opportunities to improve the long-term sustainability of our plans.”

In 2018, anchor tenant Booking.com announced it will take 220,000 sq. ft. at Manchester Goods Yard, creating a £175m tech hub at the heart of St. John’s and generating up to 900 new jobs to add to its existing 1,500.

Meanwhile, Globe & Simpson, a 9-storey 80,000 sq. ft. commercial building, was recommended for approval at this month’s meeting of Manchester City Council’s Planning Committee. The building is not only set to enhance the Enterprise City offering but will also bring more jobs to the area and support the construction sector.

Latest news

More contractors suspended from Prompt Payment Code

Galliford Try, Ferrovial and Alun Griffiths among firms not paying on time
8 hours ago

Lendlease names new London construction chief

Claire Pettett has over 11 years experience at Lendlease mostly on the finance side
9 hours ago

Construction restructure costs Galliford Try £10m

Average group net debt rises to £187m after year of writedowns
13 hours ago

Six climate activists arrested at concrete plant

Police chief warns construction companies they will be targeted during week of action
14 hours ago

Civils and concrete specialist OHOB delivers £27m profit

O’Halloran & O’Brien builds revenue to £300m after expanding from south east base into the Midlands
14 hours ago

Worker killed on Asda extension site

Victim "hit by digger bucket" in site tragedy
23 hours ago

Leeds Merrion Centre 17 storey office block approved

New office block in shopping centre will cost over £50m to build
13 hours ago

£17m Blackpool hotel project out to bid

Muse invited bids for Talbot Gateway scheme Holiday Inn
15 hours ago

Countryside wins £400m London Camden Lock estate rebuilds

Work could start on 700-home estate rebuild late next year
1 day ago

Contractor fined for ignoring site welfare order

Manchester firm failed to provide decent facilities for workers
15 hours ago

Murphy suffers £5.8m loss

Revenue up 4.4% to £781m driven by transport and power projects
2 days ago

London Mayor uproots Tulip Tower plan

Sadiq Khan blocks 305m skyscraper plan despite city planners' approval
2 days ago

Third Van Elle board director exits

John Foster, group commercial director, departs six months after joining piling specialist
2 days ago

Hunt starts for partner to deliver £1.5bn Wales schools plan

Welsh Government is looking for partner for new public private schools delivery model
2 days ago

HS2 unveils plans for “people mover” on new viaduct

2.3km route will transport people to Birmingham Airport
2 days ago

Manager merry-go-round causing mayhem for contractors

Construction bosses walk-in to new jobs no matter how poor their track record is
2 days ago

Contractor hunt starts for new £1.7bn Stonehenge route

Highways England hopes to attract bids from "some of the world’s best construction companies"
2 days ago

29 arrests in immigration raid on BAM King’s Cross site

Illegal Albanian, Indian and Lithuanian workers detained during swoop on flagship London job
3 days ago

Call to delay VAT changes as chaos looms for contractors

Industry leaders demand six month delay to October deadline as contractors unaware of tax changes
3 days ago

Hull contractor C Spencer back in profit

Specialist records £1.8m profit after revenue cut to £54m in year of consolidation
3 days ago

ISG wins £23m Cardiff Uni science building

Six-storey maths and computer block will be built on the Cathays campus
3 days ago

Local civils firm lands £17m London Airport job

East London civils contractor Kilnbridge wins biggest contract this year
5 days ago

Tolent starts £34m Leeds rental flats job

12-storey block is being built for Grainger as part of the Holbeck Urban Village
3 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
1 year ago

Foundations specialist Aspin goes into administration

All staff sent home as ground engineering firm goes under
6 days ago

HPL cladding to be stripped from Oxford tower block

Housing associations and councils are now planning to remove HPL cladding following new Government guidance
6 days ago

HS2 forced to rebid £435m Curzon Street station

Poor interest from contractors forces risk transfer rethink
6 days ago

Mott MacDonald names new UK and Europe chief

Cathy Travers will be in charge of 7,500 staff generating £824m revenue
5 days ago

Galliford Try Infrastructure chief exits

Nick Salt leaves as construction chief Bill Hocking takes over infrastructure
6 days ago

Interserve appoints Alan Lovell as new chairman

Industry veteran pledges to help "continue delivering Interserve’s transformation"
6 days ago

Contractor services