Aviva Studios ask for an extra £8.7m to complete - and further costs are expected

Manchester’s acclaimed new arts centre Aviva Studios, home of Factory International, has asked for another£8.7m to complete.

A report, released today, suggests costs could climb even higher before it officially opens in October.

Manchester City Council says ‘the volatile economic climate and the complexity and uniqueness of the building,’ which was built during the pandemic, have led to its budget of £210m increasing, but the ‘game-changing’ venue was ‘definitely worth the investment and worth the wait’.

As a result, the council’s governing executive committee will be asked to approve an £8.7m budget increase, largely funded through borrowing, when it meets on July 26.

An additional £1.1m will also be requested to complete nearby River Square, which has recently been the site of MIF’s Festival Square, and City Square.

Another, final request for further funding to complete the project is expected to be made in September and is said to be more than the amount currently requested.

The council plans to repay the money borrowed from income generated by the naming rights and other building-related sponsorship. It’s understood the naming deal with Aviva is worth in the region of £35m. There’s also a £670,000 grant from Arts Council England.

Deputy Council Leader Cllr Luthfur Rahmansaid: “What is being created here in Manchester is a venue which is bold, visionary and spectacular. It’s a nationally and internationally important centre for art and creativity at the heart of our city which will also create new opportunities for our people, boost our creative and visitor economy and strengthen Manchester’s global reputation.

“Nothing great was ever achieved without difficulty. For all the challenges it has faced – and who could have predicted that these would include being built during a global pandemic and against such a difficult economic backdrop – this game-changing venue is definitely worth the investment and worth the wait.

“The unprecedented level of national investment in Aviva Studios, both from the Government and Arts Council England and commercial backers such as Aviva, is a huge statement of confidence in this remarkable venue and in Manchester.

Over time, naming rights and other partnership arrangements will enable the Council to recoup the funds we have invested in this project in full as Aviva Studios makes an enormous wider contribution to the life of the city, the region and the UK as a whole.”

Up to £1.1bn is believed to be added to Manchester’s economy over 10 years through the operation of the venue through the jobs it creates and supports – estimated at more than 1,500 – and visitor spending. It is expected to attract up to 850,000 visitors a year – increasing to a million in MIF years.

The unique building is over 13,550 square metres. The 21 metre-high Warehouse space has capacity for up to 5,000 people standing, and can also be divided into a movable, full-height acoustic wall, while The Hall with its flexible stage can house an audience of 1,600 seated or 2,000 standing.

Creative industries are the fastest-growing sector in Manchester, making an annual contribution to the city’s economy of around £1.4bn.

Aviva Studios say they will cement the city’s global reputation as a centre for the arts and strengthen the city’s creative ecosystem, acting as a major training centre for future generations of talent.

Audiences have been flocking to get their first glimpse of the venue this month as it has hosted shows including acclaimed Japanese artist Yayoi Kusama’s immersive exhibition of giant inflatable sculptures You, Me and The Balloons and iconic West African singer-songwriter Angelique Kidjo as a preview of the venue during Manchester International Festival 2023.

It will open officially in October with Free Your Mind, a large-scale immersive performance based on The Matrix films presented across the building’s ultra-flexible space and designed to showcase its possibilities.