Patrizia acquires First Street Manchester

Exciting acquisition of site that is set to become cultural home of Manchester.

First Street in Manchester, which will provide a vibrant new neighbourhood has been purchased by Patrizia UK. 

The UK arm of German Company Patrizia Immobilien AG, Patrizia UK will take control of the partially developed First Street site in Manchester, which will result in “an attractive investment opportunity for institutional investors.”

First Street is set to emerge as the new cultural home for Manchester, bringing business and creativity together in a new place. 

Its compelling blend of culture, leisure, retail and office space will be in the heart of Manchester city centre.

Purchased from Ask Property Developments, the area comprises of ‘No 1 First Street’ – an 180,000sq ft office building let to occupiers including Auto Trader and Ford. 

The whole site has space to develop one million square feet of office space as well as 500 new apartments. 

Located in a prominent gateway position into the regional centre marking the entrance to the city centre from the airport and the south, First Street also has a 208-bed four-star hotel over 11 storeys that is operated by Melia Hotels International. 

This has a wellness suite, restaurant, bar and conference facilities. 

First Street also has nine bar and restaurant units as well as 700 car park spaces, and 279 luxury studio apartments will offer the very best in student living on the site. 

A new public realm will be in front of the culture centre – the home for the merged Cornerhouse and Library Theatre Company – providing space for outdoor performance and a range of events and activities that will bring new vitality to the area. 

Patrizia want to develop and own apartments as ‘build to let’ properties. This marks the Company’s first foray into the UK Private Rental Sector (PRS) and this development will form the start of Patrizia’s plans for a dedicated PRS fund.

The sale is expected to be completed by the end of the second quarter of 2015, and First Street will benefit from offices and residential developments in the next seven years. 

James Muir, Managing Director of Patrizia UK, spoke about how First Street fits into the Company’s strategy. 

He said: “We have been carefully implementing our strategy of investing in high growth locations across the UK. 

“With this investment, our property assets under management in the UK now amount to more than £1M. 

“Driven by attractive economic and demographic fundamentals in Manchester, and the growing trend for urbanisation, we are anticipating strong demand for this centrally located, high quality accommodation which will be tailored to the private rental sector. 

“Together with new commercial buildings, we expect to create an attractive investment opportunity for institutional investors. 

“We see this as an ideal first investment for our planned Patrizia UK PRS Fund.”

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