English Cities Fund (ECf) has agreed terms with Legal & General Property to invest a further GBP60m into the major regeneration of the New Bailey area of its Salford Central scheme.
Legal & General will forward fund a 125,000 sq ft office building and a new multi-storey car park.
ECf’s major regeneration of Salford Central includes the creation of almost 1,000 new homes and 11,000 new jobs.
Following the commencement of a new Premier Inn hotel, the investment will fund a further two phases of development of the New Bailey Scheme, a major city centre regeneration project which is situated adjacent to the successful Spinningfields development. The first of these to start on site, with work scheduled to begin this month, the multi-storey car park is targeted for completion in December 2014 and will comprise 615 spaces arranged over nine levels. Benefitting from direct access to two main arterial routes to the city – Manchester’s Inner Relief Route (A6042) and Irwell Street (A34) – a pre-let is in place with National Car Parks (NCP) on a 35 year FRI term with RPI-linked reviews.
Salford Central is made up of two inter-dependent, but distinct areas, Chapel Street and New Bailey, occupying over 17.75 hectares of Salford. When complete, the scheme, which is being delivered through a development agreement with Salford Council, will create around 11,000 new jobs and will provide 2.37 million sq ft of commercial space, 849 new homes and 390 hotel rooms. During 2013 ECf commenced or secured four phases of development with a combined end value of GBP95m. Linking with Chapel Street and the historic heart of Salford, where ECf is currently on site with the 97 home ‘Vimto Gardens’ development, the New Bailey location currently consists of vacant land around Salford Central Station and the riverbank opposite Manchester’s successful business district of Spinningfields.
Bill Hughes, managing director of Legal & General Property, says: “This is a significant investment in Salford and one that we believe will help to kick start the City’s wider regeneration. We believe that ECf’s plans for Salford Central will not only fundamentally reposition this city centre location, but provide much needed homes, jobs and office, retail and leisure space, as well as the improved infrastructure to support the city going forward.
“With significant volumes of patient capital under management, we believe that it is inevitable that the private sector in the form of long-term institutional investment plays a meaningful role in bringing about major regeneration and solving the UK’s chronic housing shortage. As such, we have already invested over GBP3bn in infrastructure and housing, and are part of the insurance industry group that has pledged to invest GBP25 billion in UK infrastructure projects by 2018.”
Phil Mayall, development director at ECf, says: “Legal & General's investment in New Bailey represents a significant milestone in the evolution of our scheme. It represents a clear demonstration that New Bailey is a high quality, deliverable development and we very much look forward to welcoming occupiers to the new office building.
“Not only will the occupiers enjoy a high quality development in a fantastic location and environment; they will also benefit from the delivery of the Ordsall Chord infrastructure, which will place a sustainable transport hub, in Salford Central Station, right at the heart of the development."