• 1,000 space MSCP
• Landlord: Stockport Council
• Developer: Muse Developments
• Completed: 2014
• Construction cost: £7.9m (£8,000 per space)
• Funding Partner: Canada Life
• Car park revenue growth: 9% YOY
In January 2011 Stockport Metropolitan Borough Council (SMBC) acquired a 250 year interest on the area adjacent to Stockport Train Station from Network Rail. Muse Developments was chosen to redevelop the land from a tired and under-used leisure scheme into Grand Central, a new £145m vibrant business and commuter hub, including a hotel, 400,000 sq ft of office and commercial space and a 1,000 space multi-storey car park.
The car park was key to this scheme; to meet the increasing demand for commuter parking, release land for further development and deliver capital receipts for additional funding.
In 2012 SMBC chose NCP, as a trusted proven partner, to manage the car park under a 35 year lease.
SMBC provided Canada Life with a 150 year peppercorn ground lease of the plot of land for a premium of £3m. Canada Life and SMBC entered a development funding agreement (DFA), with SMBC procuring construction of the MSCP.
Canada Life forward funded the project and made a balancing payment up to the final price of an estimated £22milllion, with SMBC entering a 35 occupational lease at an agreed rent. The investment yield on this transaction was estimated to be c.4.00%.
SMBC subsequently granted an occupational lease to NCP for 35 years -7 days at a rent equal to the passing rent.
This approach mitigates SMBC’s risk but most importantly, adds value to the overall scheme by bringing in NCP, an established brand with a reputation for delivering operational and customer service excellence.
NCP’s in-house technical services team provided expertise throughout the planning, design and construction of the car park to ensure key objectives were met:
The car park was completed in 2014 and we took over day-to-day management of the site, providing:
Whatever your needs, you can enter into a long term partnership with us, with confidence.