Deansgate Securities Limited, a joint venture between Ask Developments Ltd and Realty Estates, has announced its first deal on the 7 acre former Boddingtons Brewery site located to the north of Manchester’s city centre.
The developer has agreed pre-let terms with Travelodge Hotels Ltd for a 200 bedroom hotel which will be taken on a 35 year lease.
The first budget hotel brand to launch in the UK, Travelodge now operates 380 hotels in Ireland, Spain and the UK. The company has ambitions to expand, with plans to operate 70,000 rooms by 2020 and to be the biggest hotel operator in London by the time of the 2012 Olympics.
On behalf of Deansgate Securities Ltd, Alan Burke said; “We are delighted to have agreed terms with Travelodge, our first tenant, on the former Boddingtons Brewery site. This decision has been taken while the economy is still fragile and the property market remains subdued. It reflects a massive vote of confidence in the site, which is a stone’s throw from the highly successful MEN Arena and Manchester’s primary shopping area, the Arndale Centre.
“We are also delighted to announce today that we have agreed terms with Marcus Worthington Properties (MWPL) to forward purchase the investment and undertake the construction work. Our forward sale deal with MWPL reflects both parties willingness to think outside the box in a difficult funding marketplace”.
Tony O’Brien, Group property Director at Travelodge, said; “The Boddingtons site is a great location, benefiting from a strong business market as well as the MEN Arena which is one of the busiest concert venues in the world. This hotel reflects our strategy of developing in high profile locations in the UK’s leading city centres.”
Russ Worthington, Director of MWPL, said; “Because we are both developer and contractor we can aggressively compete with others in the market and act as a catalyst for development, facilitating deals like this one with Deansgate Securities.
“MWPL are delighted to be working with DSL and this is the third hotel deal we have done in the last six months which will further enhance our commercial development portfolio. We have been active throughout this turbulent period and are continually in search of similar opportunities.”
The developer expects to submit a detailed planning application for the scheme by the end of February and be on site in July 2010. It is anticipated that the hotel will open for business in June 2011.
Ask and Realty Estates acquired the 7.4 acre site in 2006 with funding from HSBC. Architects are HKR in Manchester.
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Notes to editors
Ask Developments has previously been involved in delivering high quality regeneration schemes in Manchester including the £10m popular Deansgate Locks scheme. The company is currently developing Central Park - the UK’s first large-scale mixed-use urban business park just 1.5 miles from Manchester City Centre. It also has an extensive portfolio of mixed-use schemes including the 20 acre First Street scheme in city centre Manchester, Knowsley Place in Bury, St Petersfield urban business quarter in Ashton and Eden Square in Urmston.
Realty Estates has operated in Manchester for over 20 years with an extensive portfolio including industrial, commercial and residential properties in the UK, predominantly in the North West. The Group also encompasses a number of trading divisions, including a Hotel and a chain of rapidly expanding Self Storage centres. The successful regeneration and transformation of old and redundant buildings into vibrant and active business centres has been Realty’s core activity.
Realty’s major landmark achievements include the former Manchester Abbatoir, one of the largest redundant sites in the Manchester area, which is now converted to the thriving Riverpark Business Centre following its acquisition in 2000; Howe Bridge Mill in Atherton, a former cotton spinning mill, again redundant, which is now a bustling Trade Centre Complex encompassing perhaps the biggest bathroom display facility in the UK; Etherow Industrial Estate, formerly a textile mill in Glossop, which has been transformed into a thriving business community.
Realty retains prestigious office suites at Gateway House, Piccadilly and on Princess Street. A state of the art LED display tower, measuring 18 metres in height has changed the face of Gateway House into a new landmark in Manchester City Centre.
Marcus Worthington Properties is part of The Marcus Worthington Group and specialises in land acquisition and development. It holds an extensive investment property portfolio consisting of various freehold commercial properties. Other companies within The Marcus Worthington Group included the construction arm Marcus Worthington & Co and residential property division Hollinwood Homes.
Recent successful projects completed include the new £15m Gallagher Retail Park in Huddersfield, the £23m construction of Premier Inn development in Preston and the development of a £26m student accommodation complex in the heart of Preston’s university campus.
