Manchester Airports Group (MAG) has selected a consortium comprising Carillion, Beijing Construction Engineering Group (BCEG) and the Greater Manchester Pension Fund (GMPF) to deliver the £800m Airport City project.
MAG has signed a joint venture agreement with BCEG, Carillion and the GMPF for the project, which will be the core element of the government-designated ‘Enterprise Zone’ surrounding Manchester Airport.
Argent will be the development manager for the scheme, which secured outline planning permission at the start of 2013.
MAG has a 50% share of the project while BCEG and Carillion own a 20% interest each, with the remaining 10% stake held by GMPF.
Carillion anticipates investing up to £12m of equity in the development, as well as delivering up to £580m of construction work.
MAG chief executive Charlie Cornish said, "The inclusion of BCEG is significant because as a group, we have been keen to forge greater links with the Far East and this gives us an opportunity to strengthen vital business links with China."
The 150-acre regeneration project is likely to create more than 5 million ft² of new high-quality business premises over the next 15 years.
The development will be divided into two zones, with the first zone comprising 1.85 million ft² of hotel, office, retail and advanced manufacturing space near Manchester Airport’s existing train station.
The second zone, comprising freight and logistics space, will be created next to the airport’s existing cargo centre at Junction 6 of the M56 motorway.
Phase one of the project will involve landscaping and the construction of roads, infrastructure and utilities.
After completion, there will be 1.5 million ft² of offices, 650,000ft² of advanced manufacturing space, around 100,000ft² of retail and leisure units, around 2,400 new hotel beds and 1.4 million ft² of logistics and warehousing units.
Plans also include an 800m-long landscaped ‘Central Park’ area featuring a number of pavilions and a large-scale event space.
Airport City is anticipated to be one of the largest regeneration schemes in the UK since the Olympics redevelopment in East London.
Image: The Manchester Airport City development will feature retail, leisure and hotel space. Photo: Manchester Airports Group.