The deal allows Landsec/U+I to begin drawing down land for two office buildings totalling 320,000 sq ft and a 581-space multi-storey car park, which were granted planning consent back in January 2020.
The developer now expects to be on site in 2023 with a 24-month programme to deliver the first building – the 76,000 sq ft Poulton and the car park.
Landsec bought developer U+I for £190m last year in a move to diversify its portfolio of schemes, giving it involvement in the Mayfield Partnership, a public-private venture also comprising Manchester City Council, Transport for Greater Manchester and developer LCR.
The first element of the scheme a 6.5-acre opened to the public at the end of September this year.
The overall masterplan for Mayfield will see more than 1.5m sq ft of commercial office development, more than 1,500 homes and a significant food, leisure and retail offer all built around more than 13-acres of public greenspace.
The previously hidden River Medlock runs through the heart of the site and has been uncovered and cleaned as part of the development of Mayfield Park.
Peter Hawthorne, LCR’s CEO, said: “This is a landmark moment for the Mayfield Partnership that allows us to continue the significant momentum we have already built with the project.
“Following the completion of our 6.5-acre public park earlier this summer, this deal presents us with an opportunity to start building at Mayfield with energy.
“We are very pleased to have a deal in place that means we can move at some pace to deliver enhanced public value to the surrounding community.”
Mike Hood, U+I’s chief executive said: “We are excited by the opportunity to deliver the next phase of our scheme, continuing our commitment to the project and to the city of Manchester.
“The opportunity to work with our colleagues at Landsec to fund this first phase of development at Mayfield is significant progress on a strategy to unlock our wider mixed-use regeneration portfolio and is a big step forward in our mission to become the best mixed-use regeneration investor and developer in the UK.”