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Property Alliance Group and Starwood Capital Group have announced the acquisition of the Renaissance Manchester site for an undisclosed sum.
Located on Deansgate and adjacent to Harvey Nichols, Selfridges and Manchester Cathedral, the city centre site currently includes a 206-bedroom hotel, car park and office building.
The new joint venture will reportedly draw up plans to redevelop the site into a £200m “mixed-used scheme” including a new hotel, office space, car park and residential units.
Timothy Abram, VP 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’s plans for the development will aim to reduce waste and emissions during the construction phase.
Alex Russell, MD of Alliance expressed that Starwood Capital is a like minded partner that shares the same company vision and commitment to deliver this development.
He said: “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.”
He 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 reused or repurposed.”
CBRE acted for Starwood Capital and Alliance on the acquisition while Alliance was advised on legal matters by Shoosmiths and law firm Paul Hastings acted for Starwood.
