The state owned Industrial and Commercial Bank of China (ICBC) is poised to invest in Manchester’s Airport City development, the FT reveals. The deal is expected to be signed when Chancellor George Osborne visits Beijing this month following a thaw in diplomatic relations between the two countries.
The investment is the latest in a string of Chinese forays into the UK commercial property market as financial institutions and developers seek to add to their overseas assets. It comes in the same week that a Chinese company unveiled plans to rebuild London’s Crystal Palace, and only months after the Royal Docks ‘Chinatown’ proposals were announced.
The Airport City investment will be one of the largest China has made outside the capital and will contribute to the transformation of 150 acres of scrubland into over 4 million sq ft of quality office, retail and leisure space. It is believed that the development will create around 16,000 jobs over the next 15 years and establish itself as a key international business destination.
The appeal of the location will be further enhanced by the site’s designation as an Enterprise Zone, which will offer tenants up to £275,000 worth of Business Rates relief. It will also benefit from a simplified planning process and superfast broadband.
Manchester Airport is set to double its passenger capacity by 2030 and, significantly, is currently in advanced talks about introducing its first direct flights to China.
