A huge site on Manchester’s Deansgate including a large hotel, car park and office building has been acquired by a joint venture, with plans revealed to turn it into a £200m mixed-use scheme.
The Renaissance Manchester site has been acquired by Starwood Capital Group and Property Alliance Group, who said they are drawing up plans to redevelop the site into a mixed-used scheme including a new hotel, office space, car park and residential units.
The prime city centre site is next to Harvey Nichols, Manchester Cathedral and Selfridges, and was bought from Urban & Civic.
Timothy Abram, vice president at Starwood Capital, said: “We have made several major investments in Manchester over the past decade and, following on from these successes, we are excited to have another opportunity to invest in the city.
“The redevelopment of this prime site has the potential to generate many economic benefits for Manchester and we hope this will be the first of many investments made through our new joint venture with Alliance.”
The joint venture said it hopes to reduce waste and emissions during the construction phase.
Alex Russell, managing director of Alliance, added: “We are delighted to announce the acquisition of the Renaissance Manchester site and our new partnership with Starwood Capital.
“Starwood Capital is a likeminded partner that shares our vision and commitment to deliver this development. Our complementary skill sets and combined real estate experience, including Starwood Capital’s unique hospitality track record, means we are well positioned to deliver a landmark scheme that will regenerate a key part of Manchester.
“We will now be working closely with Manchester City Council to develop our plans with the aim of presenting these over the coming months.”
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Mr Russell added: “We are committed to helping make Manchester a zero-carbon city by 2038 and that will mean more environmentally-friendly construction practices across all our schemes, including the redevelopment of this site. We are developing a sustainable design and the majority of the existing building will be re-used or re-purposed.”
CBRE acted for Starwood Capital and Alliance on the acquisition. JLL and Savills advised Urban & Civic on the sale.
Alliance was advised on legal matters by Shoosmiths and law firm Paul Hastings acted for Starwood.