In April 2019, The MJ reported on a public private partnership that has stood the test of time, delivering a transformational mixed-use destination in Salford that has been 10 years in the making. A year on, significant progress has been made, and the partnership between The English Cities Fund and Salford City Council goes from strength to strength.
Office schemes One New Bailey and Riverside House are now fully let; Two New Bailey Square, which will welcome prestigious global legal practice Eversheds Sutherland in early 2021, completes construction in October. Meanwhile, Three New Bailey, which has been fully pre-let to HMRC, topped out in February and is due in early 2021, before Four New Bailey breaks ground later this year. Work is also underway on the construction of a new 23-storey residential tower, following the success of the popular build to rent development, The Slate Yard.
There’s no mistaking that COVID-19 has knocked the sector for six. Its impact has been far reaching and will continue to be challenging as we head into a recessionary period, but there are still opportunities available. Now, more than ever, it’s time to build on the strong public private partnerships we’ve developed over time, so that we can work together to kick start the economy, which will come from our towns and cities.” says Phil Mayall, regional director for The English Cities Fund, a joint venture between Muse Developments, Legal and General and Homes England.
The fund and Salford City Council continue to deliver their long-term vision for the city, which not only includes the New Bailey scheme, but also extends along Chapel Street with a number of residential schemes. The fund continues to kick on despite the pandemic and was selected in March to deliver the £2.5bn, 240-acre Salford Crescent and University District masterplan, which strengthens the fund’s partnership with the council, but importantly forges a new relationship with The University of Salford, to deliver one of the largest regeneration projects in the UK.
But under the backdrop of a pandemic, where does that leave the future of the commercial office market?
There has been much speculation about the office market and in which direction it will go now, but the property market remains buoyant and despite lettings over the last quarter being understandably low, demand remains high as many businesses are now looking to take even more office space to allow for greater flexibility with a focus on colleague wellness. Even as we go into recession, innovation and quality are still paramount, sustainability goals remain high and social impact is still at the heart of our regeneration plans.
Despite COVID-19, sustainability and high-quality design through innovative build techniques in our developments and across the public realm, is still paramount and, and as we continue to develop in strategic locations near to transport hubs, like Salford Central train station, the partnership is continuing to support the Greater Manchester Combined Authority’s target to be carbon neutral by 2028.
Economic and social gains
Driving economic growth and social prosperity in Salford is vital to the success of the partnership and is a thread that runs through every aspect of our development plans. Salford’s local economy has been growing rapidly in recent years and is forecast to experience the highest percentage growth in Greater Manchester in the next two decades. The value of the economy is forecast to increase by 37%, from £7.3 billion to just over £10 billion by 2039. Total employment in the city currently stands at 153,000, with a base growth forecast of +19,000 additional jobs to be created in the city by 2039.
Salford has come a long way, and the impact is striking. As we emerge from this latest crisis a little battle scarred, it’s important to stay positive with a courageous mindset to navigate the choppy waters ahead. We’ve worked hard to keep our schemes moving safely and in line with government guidelines, something which wouldn’t have been possible if it wasn’t for the strong partnership we’ve created and nurtured over many years.
Phil Mayall is development director of the English Cities Fund