Global Partners Chosen for $1.2B Enterprise Zone

MANCHESTER, UK—Manchester Airports Group (MAG) has announced a joint venture agreement with Beijing Construction Engineering Group (BCEG), Carillion PLC and the Greater Manchester Pension Fund (GMPF) in relation to the development of the $1.28 billion (£800M) Airport City project at Manchester Airport.  Argent has been appointed by the joint venture as development manager for the project.

Airport City will be the core element of the Government-designated Enterprise Zone surrounding the UK's third busiest airport, Manchester. The idea of siting the zone around Manchester Airport alongside supporting sites in South Manchester is to help attract international businesses that could contribute an additional 16,000 jobs in the North West of England. Permits and entitlements for Airport City was secured at the start of 2013 and the Chancellor, George Osborne, marked the official start on site at the end of May. It will provide five million square feet of development, a mix of offices, hotels, advanced manufacturing, logistics and warehousing.
MAG began a search for joint venture partners at the end of 2012, advised by CBRE and Eversheds.

“We are delighted to confirm organizations of global standing as our joint venture partners,” said Charlie Cornish, chief executive of MAG. “The inclusion of BCEG is significant because as a group, we have been keen to forge greater links with the Far East and this gives us an opportunity to strengthen vital business links with China. With GMPF on board, Greater Manchester is investing in the future of the North West and Carillion bring sector-leading experience in project finance, delivery and sustainability, both in the UK and internationally. In Argent, we have one of the most renowned developers in its field and by working together as a partnership, we are well positioned to deliver the UK's first Airport City.”

Airport City is expected to be one of the largest redevelopment projects in the UK since the Olympics redevelopment in East London. Airport City will compete with existing projects outside the UK including those on the airport sites of Barcelona and Amsterdam. Manchester Airport is currently used by more than 20 million passengers annually, and has flights to more than 200 global destinations. Over 6.5 million people (8% of the UK population) live in Manchester and the North West area, accounting for 11% of UK GDP.

MAG has been actively looking to the Far East for a direct airline service between Manchester and China in the last year and Cornish, is the chair of the Manchester-China Forum, a new business-led initiative aimed at increasing Greater Manchester's commercial connectivity with China. The Airport City deal presents one of the biggest joint venture investments into the UK.  BCEG is a leading construction and engineering company in China and is already active in global markets, particularly in the USA.
“To be included in such an interesting and unique development is a real honor,” said Xing Yan, managing director of BCEG International Co. Ltd. “To be part of a project of this size and scale, working alongside other such highly regarded organizations, will be an exciting, challenging and rewarding opportunity, which we look forward to beginning. We see our involvement in Airport City as an extension of the memorandum of understanding between China and the UK, where we have been looking to further explore joint infrastructure opportunities for some time.”

Carillion PLC already has vast experience in the UK, Middle East, North Africa and Canada and will be an important conduit between the UK and Chinese sectors.
Argent is widely recognised as one of the leading developers in the UK. Their creative approach to development has led to the successful regeneration of over