Buyer deposits repaid as Manchester’s tallest tower axed

Aaron Morby 5 years 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

Funding deal for Salford Michigan Tower job

Vermont Construction to build first 34-storey tower for developer X1
56 mins ago

Morgan Sindall bags £60m raft of NHS projects

Mid and South Essex NHS Trust plans six projects
16 hours ago

Peri buys shoring and temporary bridge specialist Mabey Hire

Scaffolding and formwork specialist expands offer
20 hours ago

Steel contractor Embrace targets £100m revenue

Growing structural steel specialist appoints COO
51 mins ago

Vinci/McAlpine go-ahead for £312m Midlands hospitals revamp

Shrewsbury and Telford Hospital NHS Trust gets full business case approval
23 hours ago

Lendlease puts construction arm up for sale

After two decades of global expansion Lendlease retreats to Australia
2 days ago

Mount Anvil seals Isle of Dogs estate rebuild

Firm will build 300 new homes at East London's Tiller Road Estate
23 hours ago

Northumbria Uni invites bids for £75m CHASE project

12-storey student block to be demolished for new Centre for Health and Social Equity
22 hours ago

Civils firm Akela appoints former Robertson director as MD

Framework expert Robert Ogg to lead growth at Scottish contractor
23 hours ago

McLaren to build new Hertfordshire primary school

Contractor to prioritise local suppliers on High Leigh Garden Village site
22 hours ago

Developer picked for Stafford town centre regeneration

ION Developments will draw up detailed plans for mixed-use Eastgate scheme
23 hours ago

Former Crossrail boss Mark Wild to lead HS2

Wild to bear down on spiralling costs and bring rejigged scheme in on time
2 days ago

Receivers in at £125m Manchester tower developer

Domis Construction walked away from scheme following doubts over funding
3 days ago

Costain A1 £260m dualling job finally gets go-ahead

Ministers sat on planning inspectors report for nearly three years
2 days ago

Election delays decision on Lower Thames Crossing

Planning decision on £1.2bn Luton airport expansion also pushed back six months
2 days ago

Caddick steps-in at former Lane End housing job

Contractor to restart phase of £262m scheme hit by administration
2 days ago

Plans in for Leeds iconic Tetley building revamp

Former brewing giant's HQ to become indoor market and offices
2 days ago

BAM wins first phase of North Devon hospital revamp

New staff accommodation to kick-off hospital redevelopment
2 days ago

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
7 days ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
6 days ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
6 days ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
6 days ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
7 days ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
7 days ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
7 days ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
7 days ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
7 days ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
7 days ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
7 days ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
1 week ago

Contractor services