Hines has formed a joint venture with Manchester & Metropolitan Properties to redevelop the former Odeon cinema in Manchester city centre.
The partnership will develop a 178,000 sq ft office block on the site on Oxford Street, next to Argent’s One St Peter’s Square, which is under construction.
The deal marks Hines’ debut in Manchester. The firm said it wanted to continue to expand its UK presence, focusing on key regional markets.
The debut scheme will be funded by Hines, which will also manage project development on behalf of the venture.
Planning consent for the 13-storey Squire & Partners-designed building (pictured) is already in place.
Hines said there was no intention to start development speculatively, but “this will be reviewed depending on market conditions”.
Hines director Anthony Leonard said: “We have been looking at opportunities in Manchester for some time.
“Availability of quality office space will become scarce and, with few new buildings under construction, we believe there is a tremendous opportunity in Manchester to deliver new grade A space.
“In bringing new stock to the market in 2015 and beyond, we hope to be in a prime position to capitalise on an improving economy.”
Hines is currently constructing Five Brindleyplace and Two Snowhill in Birmingham, in partnership with Moorfield and Ballymore, respectively.
The company’s London portfolio of assets under management includes city offices Cannon Place, Broadgate West, and One Bartholomew Lane; One Westferry Circus in the Docklands, and 280 High Holborn and Stonecutter Court in Midtown.
Its UK portfolio has a total value of more than £1bn.
simon.binns@estatesgazette.com
