Kames Ponders £40M Manchester Spec Office Scheme
Kames Capital could be set to push the button on a 135K SF speculative office developmentat at 39 Deansgate, Manchester.
In November 2019 Kames announced a public consultation on the office development at the corner of Deansgate and St Mary's Gate.
Kames is planning to self-fund the £40M speculative development with construction due for completion by 2024, React News reported.
Approached by Bisnow, Kames declined to confirm that a decision had been made to launch a speculative scheme, and referrred instead to a press statement which said: "Following the consultation, the project team will take all comments into consideration ahead of the submission of a full planning application to Manchester City Council in early 2020."
The current 40K SF building, refurbished as recently as 2014, was acquired by Kames in 2018 for £11M.
If Kames does launch speculative development it will be an abrupt acceleration of the policy announced last year which was to continue with rolling refurbishment.
"Our strategy is to continue the refurbishment of the office building on a rolling basis to create distinctive floorplates that will suit occupier requirements and will capture the rental growth that is evident for good quality space targeting cost-conscious occupiers," Kames Property Income Fund Manager David Wise said then.
"In the medium term, the property represents an attractive redevelopment opportunity with the city council keen to promote taller buildings in this part of the city. Alternative higher value uses for the location include residential, PRS, hotel or retail and offices," Wise added.
The 17-storey block has been designed by Sheppard Robson.
“Manchester has experienced a sustained period of unprecedented growth over the past two decades and the city remains highly attractive to major occupiers. There is strong demand for high-quality office space in Manchester and 39 Deansgate represents an attractive redevelopment opportunity. We welcome the views of local residents and business on the proposals," Kames Property Income Fund co-Manager Richard Peacock said in November.
CBRE is advising.
