AUS
NZ
UK
CA
USA
IND
Key Points:
- Virgin Media O2 has pre-let 45,700 sq ft of office space at HBD's Island development in Manchester, securing a 10-year lease for approximately 50% of the building.
- The telecommunications company will consolidate multiple regional sites into a single northern hub, enhancing efficiency and service delivery for its customer support teams.
- The Island development aims for BREEAM 'Excellent' and EPC A ratings, highlighting a focus on employee wellbeing and energy efficiency, with plans to achieve a 5.5-star NABERS rating.
Henry Boot PLC (LSE:BOOT) has announced that its property investment and development arm, HBD, has successfully pre-let 45,700 square feet of office space to Virgin Media O2. This agreement is part of a joint venture scheme with the Greater Manchester Pension Fund (GMPF), known as Island. The project, which has a gross development value of £66 million—equating to HBD's share of £33 million—is situated in Manchester's bustling Central Business District.
In a significant move, Virgin Media O2, a prominent British telecommunications provider, signed a 10-year lease for the top five floors of the Island development. This pre-letting agreement constitutes approximately 50% of the total office space available in the building. The company is set to consolidate several of its regional sites into this centralized urban location, establishing a northern hub that will accommodate various teams, including customer service agents who specialize in addressing a wide range of customer concerns.
The Island site was initially acquired by GMPF before HBD joined as a 50/50 joint venture partner in 2019, taking on the roles of development and project manager. HBD successfully obtained planning permission to develop the Island project in 2021, and construction commenced in 2022. Upon completion, the Island development will feature 91,000 square feet of prime office space distributed across nine floors, designed to enhance the working environment for its occupants.
Central to the vision of Island is a commitment to employee wellbeing and sustainability. The development is striving for BREEAM 'Excellent' and Energy Performance Certificate (EPC) A ratings, reflecting its dedication to creating a high-quality working environment. To further its sustainability goals, HBD has entered into a 5-star NABERS Design for Performance Agreement with The Building Research Establishment, with aspirations to minimize energy consumption further, aiming for a 5.5-star rating.
With the project expected to reach completion by the end of October 2024, the collaboration between Henry Boot and Virgin Media O2 marks a significant investment in Manchester's urban landscape. As businesses increasingly recognize the importance of strategic location and sustainable office environments, developments like Island are poised to become attractive options for companies looking to thrive in a competitive market.
