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Jul 13, 2023

Sale nears for THG’s £250m Manchester campus 

The complex completed in 2021 and has an estimated GDV of £250m Credit: Google Earth A fund managed by ICG Longbow is understood to be close to acquiring Icon Business Park, part of THG founder

The complex completed in 2021 and has an estimated GDV of £250m Credit: Google Earth

A fund managed by ICG Longbow is understood to be close to acquiring Icon Business Park, part of THG founder Matthew Moulding’s property portfolio.

Occupied by the ecommerce conglomerate, the 1m sq ft complex off Sunbank Lane close to Manchester Airport comprises five industrial units and an office.

THG acquired the site in 2019 in a deal estimated to be worth £250m, before selling the site to Moulding Capital in 2020. The scheme completed in 2021.

SLBI Propco C Limited, a company set up through ICG Longbow’s sale and leaseback fund, has been set up to buy Icon Business Park, according to a report to Warrington Council’s cabinet. The part of the report pertaining to the sale can be found on page 83.

The industrial complex is currently used as security for a £128m portion of a £202m loan Warrington Council gave to the group of companies controlled by Guernsey-based Moulding Capital in 2020.

Moulding Capital is owned by Moulding and is separate from THG.

In order for Moulding’s sale of Icon Business Park to complete, Warrington Council is to transfer £128m secured against the industrial asset to SLBI Propco C, the cabinet report states.

Warrington’s plan to novate the loan will result in its partial repayment, “reducing the council’s risk”, according to the report.

ICG Longbow is described in the cabinet report as a leading European real estate investor “with a 35-year track record of investing and €70bn assets under management”.

Recently, the investor acquired a £220m portfolio of Morrisons distribution hubs as part of its sale and leaseback strategy.

ICG Longbow declined to comment on its plans to acquire Icon Business Park when contacted by Place North West. THG and Warrington Council also declined to comment on the deal.

While Moulding is now selling Icon Business Park, a short distance away, THG’s long-awaited plans for a different 1m sq ft campus off Enterprise Way have seemingly stalled.

Manchester City Council granted approval for the project at Airport City in 2018 but no work has taken place despite THG entering into advanced talks with contractors to build out the first phase in 2022.

Earlier this year, Trafford Council pulled a £67.5m loan for the construction of the campus after it was not drawn down.

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Prompted by strong demand for Grade A office space in the city centre and the resolution of legal issues limiting height, the developer has applied to add two extra floors to its New Victoria workspace scheme.