The Way Ahead For First Street: Less Patrizia, Much More Richardsons
Patrizia U.K. has sold a 90% stake in the remaining 750K SF office development at First Street, Manchester to the Birmingham-based Richardson property dynasty and Ask Real Estate, which is two-thirds owned by the Richardsons.
The deal, reported to be valued at £25M, gives 45% stakes to both Ask Real Estate and their new owners, the Richardsons' property vehicles.
The 2.3 acre site is a vacant plot adjacent to the 170K SF No. 8 First St., slated for around 750K SF of new offices.
Earlier this week it was revealed that No. 8 First St., which has been shortlisted by Amazon for its new Manchester base, is to be built by Rayner Rowen and subcontractors after the collapse of contractor Carillion threw progress into doubt.
The sale means a return to the front line for Manchester-based Ask, who were the original developers and promoters of the 20-acre First Street project.
Ask Real Estate, which was formed in 2000, assembled the site and began development at the 180K SF office block No. 1 First St. before selling the entire First Street site to Patrizia U.K. in May 2015. No. 1 First St. is now fully let. No. 8 First St. is the second office block at the scheme, and the bulk of the remainder is reserved for apartments.
In October Carillion, the contractor on the First Street scheme that fell into administration last month, sold its two-thirds stake in Ask to the Richardsons.
Savills and GVA are letting agents at No. 8.
