£45m funding deal for Manchester office project

Aaron Morby 7 years ago
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Lancashire developer Worthing Properties has secured a £45m funding deal to start construction of a speculative 12-storey office block at Deansgate in Manchester.

 125 Deansgate project designed by Glenn Howells Architects
125 Deansgate project designed by Glenn Howells Architects

The 125 Deansgate project will be built by the Marcus Worthington Group construction arm with work due to start on site in February.

The clubbed financing facility has been provided by North West Evergreen Fund, a local authority pension fund and the Growing Places Fund.

Designed by Glenn Howells Architects the scheme when finished in summer 2019 will provide 113,500 sq ft of Grade A office space in the heart of Manchester.

Deansgate

Replacing 123-127 Deansgate, it will form a key part of the wider redevelopment of Brazenose Street and Lincoln Square.

Russ Worthington, director of Worthington Properties, said: “These investors are incredibly astute and have to be confident the development would provide a return for them.

“They would have not provided the facility if they didn’t see the value in the development and we’re proud to be working in partnership with them on this. This funding will mean we are able to progress with speculatively developing the building.”

Councillor Kieran Quinn, Lead Member for Investment and Finance on the Greater Manchester Combined Authority said: “Enabling redevelopment of this site represents an excellent opportunity for the North West Evergreen Fund. The investment will provide both the returns that the fund needs to continue supporting regeneration projects and the social value for Greater Manchester in the form of jobs and a new first class office facility.”

The North West Evergreen Fund, which is made up of 16 local authority limited partners, was established to provide funding to support real estate projects, which are critical to the region’s economy, generating jobs and growth.

It is capitalised through the European Regional Development Fund and other public money allocated under the Joint European Support for Sustainable Investment in City Areas initiative, which is managed by the European Investment Bank in the North West on behalf of the Homes and Communities Agency.

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