Hermes Real Estate is partnering The Co-operative Group on the UK鈥檚 biggest regional redevelopment project, the mixed-use NOMA scheme in Manchester.
Co-Op and Hermes, the asset manager wholly owned by the BT Pension Scheme, will be equal partners in the 拢800m (鈧�967m) joint venture. An initial agreement is expected next month.
The 10-year project will see 20 acres of land developed in the centre of the city. Hermes鈥� development arm, Argent, however, will not be involved in the project. The developer, which Hermes bought in 1997, is currently working on the mixed-use King鈥檚 Cross development.
Chris Taylor, chief executive at Hermes Real Estate Investment Management, compared NOMA鈥檚 attributes to the King鈥檚 Cross scheme and Birmingham鈥檚 Paradise Circus.
He said: 鈥淭his is consistent with our UK strategy of investing in commanding sites within major urban areas.鈥�
The joint venture is the latest evidence of growing interest from institutional investors in regional UK property markets.
Taylor said Hermes was attracted to areas benefitting from 鈥渋mproved infrastructure, regeneration, enhanced public realm and proximity to major retail and leisure facilities鈥�.
Late last year, Hermes sold a 50% stake in a 拢270m Milton Keynes shopping centre on behalf of the BT Pension Scheme, which had owned the 1.3m sq ft asset for nearly 40 years.
