Manchester Colloco Office Gets £23.7m Good Growth Fund Loan Support, Manchester 2026

Key Points

• Developer HBD has secured a £23.7m loan from Greater Manchester Combined Authority’s £2bn Good Growth Fund
• The loan will fund Colloco, a 200,000 sq ft, 16-storey office development in Manchester city centre
• Planning permission was granted in 2024 but adverse market movements rendered the scheme unviable
• The loan is provided on below-market terms to plug the viability gap and leverage private sector capital
• Build cost inflation, high interest rates, and cautious investment assumptions have delayed the project
• Colloco will be built to Net Zero Carbon standards with EPC A and BREEAM Excellent ratings
• The development is designed by EPR Architects and located on New Quay Street and Gartside Street
• Only one speculative office development remains on-site in Manchester, highlighting industry difficulties
• The three selected Good Growth Fund schemes have lower risk profiles due to Manchester city centre location
• To date, £800m has been allocated for 30 schemes under the Good Growth Fund since its launch last year

Manchester(Manchester Mirror)June 08, 2026 – Manchester’s commercial property sector has received significant backing as developer HBD secured a £23.7m loan from the Greater Manchester Combined Authority’s (GMCA) £2bn Good Growth Fund for its Colloco office development. As reported by Dan Whelan of Place North West, Colloco is the latest commercial scheme to benefit from a cash injection from the GMCA’s Good Growth Fund, marking a pivotal moment for the 200,000 sq ft project that has faced viability challenges since gaining planning approval.

Developer HBD secured planning permission for the Colloco office building in 2024, according to information published by HBD. The 16-storey, blue-clad office development would be constructed on the corner of New Quay Street and Gartside Street on the site of LTE Group’s former Manchester College. In the two years since obtaining planning approval, HBD has been searching for a way forward for the EPR Architects-designed project, but “adverse market movements which have reduced values” have made the scheme unviable, according to a GMCA report detailed by Place North West.

As reported by Place North West, there is currently only one speculative office development on-site in Manchester – Landsec’s Republic at Mayfield – highlighting the difficulties being faced by office developers at present. Build cost inflation, high interest rates, and “more cautious investment assumptions” have also held Colloco back, the GMCA report states.

How Will the £23.7m Loan Impact the Project’s Viability?

As a result, the combined authority is stepping in to provide a £23.7m loan “on below-market terms” that it is hoped will plug the viability gap and leverage in private sector capital to deliver the project, according to Dan Whelan’s reporting at Place North West.

Colloco’s funding allocation follows the GMCA’s search for stalled commercial and residential schemes with a “clearly evidenced viability gap which can be addressed through recoverable, below-market interest rate loans”, as reported by Place North West. The three schemes selected through that call for sites – Colloco, Salboy’s 71-storey Viadux 2, and McGoff’s 153-bed Rochdale Road BTR – are all deemed to have a lower risk profile than other projects selected for allocations from the Good Growth Fund to date, due in part to their being located in Manchester city centre, where values are higher than in outlying boroughs.

HBD and GMCA were contacted for comment, though no response was immediately available, according to Place North West.

What Is the Good Growth Fund and How Much Has Been Allocated?

The Good Growth Fund was set up last year to address viability gaps identified in schemes across Greater Manchester’s 10 boroughs, as reported by Place North West. It provides flexible funding solutions, including loans and patient equity, using public monies from the GMCA and National Wealth Fund, as well as private capital from the Greater Manchester Pension Fund.

To date, allocations totalling £800m for 30 schemes have been made, including the £90m for the Carrington Relief Road and more than £40m for the conversion of the Kendal Milne building on Deansgate into offices, according to Place North West’s reporting.

What Are Colloco’s Sustainability Features and Design Specifications?

Speaking about the scheme, Adam Brady, Executive Director at HBD, commented on Colloco’s environmental credentials. As reported by HBD’s official news release, Adam Brady stated: “Colloco represents a new era in workspace design. The building looks to attract dynamic, forward-thinking organisations, which see collaboration and the health and wellbeing of their employees as fundamental to the success of their business.”

Adam Brady further added, according to HBD: “We are pleased with the planning approval which is recognition of the value that a scheme such as Colloco will bring to the city. It will be one of the most sustainable new office buildings in the regional market at a time when high-profile businesses are looking to occupy space which will support their Net Zero Carbon commitments.”

Designed by EPR Architects, with Asteer Planning acting as planning consultants, Colloco has been designed with sustainability at its core, according to HBD. The scheme will be built to Net Zero Carbon in both construction and operation and is targeting an EPC A and BREEAM Excellent ratings. It will also be compliant with British Council for Offices standards and include a host of amenities aligned with the WELL building standards.

Situated on the corner of New Quay Street and Gartside Street and formerly LTE Group’s Manchester College, Colloco will comprise 16 storeys of high-quality flexible accommodation, as reported by HBD. It will include communal spaces at ground floor level with a concierge reception, a roof pavilion with breakout and events space, and access to a landscaped garden terrace with views across the city. Each suite will also have its own private external terrace.

Where Is Colloco Located and What Sectors Predominate in the Area?

Sitting between St John’s and Spinningfields, the area around Colloco is a vibrant hub for businesses in the media, technology, and creative sectors, according to HBD. In 2023, the district saw the opening of the new Aviva Studios, establishing its status as the epicentre of cultural and creative activity in the region.

Securing planning and seeking a joint venture partner for Colloco comes a week after HBD and Greater Manchester Pension Fund topped out at Island, a 100,000 sq ft net zero carbon, smart-enabled Grade A office scheme on John Dalton Street in Manchester, as reported by HBD.

Why Has Manchester’s Office Market Faced Development Challenges?

Manchester’s office market opened 2026 in solid form, with 51 deals and 286,000 sq ft transacted in Q1, according to CBRE’s Matt Shufflebottom as reported by CRE Insider. But beneath the encouraging take-up figures lies a structural Grade A office space shortage. With no new-build completions until 2028 and prime rents heading for the mid-£50s per sq ft, the window for occupiers to secure best-in-class space is narrowing.

Greater Manchester’s economy has exceeded £100 billion, growing 28% since 2015 and outpacing the UK average, according to the Manchester Crane Survey 2026 by Deloitte. Strategic forms of investment are driving current and future economic growth within a range of commercial development sectors, aligning with demonstrable rapid population growth.

As Manchester’s commercial property market enters a pivotal new chapter, Matt Shufflebottom, Director in CBRE’s Manchester Office team, provides an exclusive outlook on the trends set to reshape the city in 2026, according to CRE Insider. With Christmas and New Year celebrations firmly in the rear-view mirror, there is a growing sense that 2026 will be a pivotal year for Manchester’s commercial property market, particularly the office sector.

Background of the Particular Development

The Colloco development represents a significant chapter in Manchester’s commercial property evolution. HBD, part of Henry Boot, initially acquired the prime site located in the heart of Manchester’s St John’s District in 2019, according to HBD’s scheme information. The developer secured planning approval for the state-of-the-art 200,000 sq ft office development in March 2024, marking a major milestone for the St John’s District of Manchester city centre.

The project team includes Arcadis EPR Architects, Asteer Planning, Curtins, Hoare Lea, and Ramboll, according to HBD. The development’s sustainability focus aligns with increasing demand from high-profile businesses seeking space that supports their Net Zero Carbon commitments. The area’s transformation into a cultural and creative epicentre, evidenced by Aviva Studios’ 2023 opening, has strengthened the location’s appeal for media, technology, and creative sector businesses.

The viability gap emerged from broader economic pressures affecting the UK’s commercial property sector, including build cost inflation(post-pandemic construction material price increases), high interest rates (Bank of England base rate fluctuations), and more cautious investment assumptions from financial institutions. These factors combined to render previously viable developments unviable without additional funding support.

The Good Growth Fund’s establishment last year reflects the GMCA’s strategic response to address viability gaps across Greater Manchester’s 10 boroughs. The fund’s £2bn total allocation demonstrates significant public investment commitment to stimulating commercial and residential development across the region.

Prediction: How This Development Will Affect Manchester’s Commercial Property Audience

This £23.7m loan injection will significantly impact Manchester’s commercial property audience across multiple dimensions. For office occupiers seeking Grade A space, the development’s completion in 2028 (or potentially earlier due to the viability support) will provide one of the few new net zero carbon office options in the regional market, addressing the current structural shortage of premium space.

For businesses in the media, technology, and creative sectors concentrated in St John’s and Spinningfields, Colloco will offer space aligned with their Net Zero Carbon commitments, potentially reducing their environmental compliance costs. The building’s WELL building standards amenities and focus on employee health and wellbeing may attract organisations prioritising workforce retention and productivity.

For investors and developers, Colloco’s successful viability resolution demonstrates the Good Growth Fund’s effectiveness in addressing stalled schemes, potentially encouraging similar applications for other Manchester city centre projects with lower risk profiles. The below-market loan terms may establish a benchmark for future public-private partnership financing in the region.

For Manchester’s economy, the development’s completion will contribute to the 28% economic growth since 2015, adding high-quality office space that supports the region’s outperformance against the UK average. The 200,000 sq ft addition represents approximately 70% of Q1 2026’s total transacted space (286,000 sq ft), significantly expanding available premium inventory.

For job seekers and the broader workforce, the development will likely support employment growth in Manchester’s expanding media, technology, and creative sectors, potentially creating hundreds of jobs in high-quality facilities that emphasise employee wellbeing and collaboration.