Telecoms company Virgin Media O2 has agreed to let 45,700 sq ft of office space in Manchester from Sheffield-based developer Henry Boot and the Greater Manchester Pension Fund.
Virgin Media O2 will take the top five floors of the nine-storey Island building in central Manchester on a 10-year lease, relocating several regional sites to create a northern hub to house its customer service agents.
The deal was struck by a joint venture between HBD, Henry Boot’s property investment and development arm, and GMPF. The property has a gross development value of £66 million.
The site was initially acquired by GMPF before HBD became a 50/50 joint venture partner in 2019, assuming the role of development and project manager. HBD achieved planning permission to develop Island in 2021 before building works commenced in 2022. Once complete, Island will provide 91,000 sq ft of prime workspace space across its nine floors.
The building is expected to be completed by the end of October.
Tim Roberts, CEO at Henry Boot, said: “Our joint venture with GMPF has enabled the delivery of a truly outstanding office space in Manchester. This landmark pre-let is testament to HBD’s expertise in delivering sustainable commercial office spaces that exceed occupiers’ expectations and support them in attracting and retaining the best talent.”
Ed Hutchinson, Managing Director at HBD, said: “Virgin Media O2’s decision to invest in Island and call this remarkable building its new home in Manchester is testament to the exceptional space we have created here. Island has been carefully designed around the needs of the occupier. Not only is it a highly intelligent and sustainable building, but it’s one which prioritises people’s health and well-being. Virgin Media O2’s values are perfectly aligned with ours and we’re proud to welcome them to Island.”
Andy Burnham, Mayor of Greater Manchester, said: “It’s very positive to see Virgin Media O2 bring their new North West HQ to Manchester in a state-of-the-art facility with net-zero carbon workspaces that enhance our carbon neutral plans. This multi-million-pound investment will bring a significant boost to the city-region and highlights Greater Manchester as a place where companies want to invest.”