Place strategy

Funding deal triggers Mayfield’s £400m first phase

Landsec will finance the construction of the first buildings in the emerging 24-acre area of ​​Manchester after reaching an agreement with the Mayfield Partnership.

The investor, which acquired developer U+I for £190million last year, has struck a deal with the Mayfield Partnership – made up of Manchester City Council, Transport for Greater Manchester, LCR and U+I.

The deal will unlock the 800,000 square foot commercial phase at Mayfield, which has a GDV of £400m, and will allow Landsec will begin drawing land from an agreed first phase along the south side of the city center to place.

The first lots available for raffle under this agreement include two office buildings totaling 320,000 square feet and a 581-space multi-storey parking lot. Planning permission for these projects was granted unanimously in February 2020.

“We are extremely proud of the work we have done with our partners at Mayfield to design a truly sustainable mixed-use regeneration program for this important Manchester site,” said Mike Hood, Managing Director of U+I.

“The opportunity to work with our colleagues at Landsec to fund this first phase of development at Mayfield is a significant step forward on a strategy to unlock our broader mixed-use regeneration portfolio and is a big step forward in our mission to to become the best mixed-use investor and regeneration developer in the UK.

Landsec/U+I could be on site in early 2023 with a 24-month schedule to deliver the first building, the 76,000 square foot Poulton, and parking lot. A contractor has yet to be named.

The Poulton will be the first vessel delivered to Mayfield. A 6.5-acre public park, which opened in September to much fanfare, was the first part of the project to be completed.

A government grant of £23 million was paid for the park.

Mayfield’s overall master plan will see the delivery of over 1.5m² of commercial office space, over 1,500 homes and a significant food, leisure and retail offering.

Cllr Bev Craig, Leader of Manchester City Council, said: “The opportunity we created when creating the Mayfield partnership was to make significant changes to this part of the city center site which had stood for too long underutilized.

“This agreement is in line with our long-term ambitions for Mayfield and is a natural next step following the delivery of the beautiful new park we completed this summer, which created a green heart in the Mayfield regeneration area and was the first step towards this new neighborhood – transforming the space between Ardwick Green and Piccadilly. The ability to start building is a major step forward in our plan to create sustainable housing, jobs and a brand new entertainment district in Mayfield.

Mayfield Partnership has also agreed to acquire the Macdonald Hotel car park near Travis Street. The site is reserved for offices as part of Mayfield’s master plan.