Capital&Centric secures funding for Neptune Mill conversion
With a £3.8m loan from the North West Evergreen Fund and the Greater Manchester Low Carbon Fund in hand, the developer is readying for a January start on bringing 22,000 sq ft of creative workspaces to the grade two-listed Manchester mill.
The remaining £3.2m for Capital&Centric’s £7m Neptune Mill scheme will come from developer equity.
Plans to transform the historic mill into offices were approved in August, through the work of consultant Avison Young. The mill sits off Chapeltown Street in the Piccadilly East district of Manchester. It goes back to the 1860s and is situated by another Capital&Centric project – the 126-flat Crusader.
In addition to holding workspaces, Neptune Mill will also be host to a ground floor café/bar and a landscaped courtyard. Designs by Jonathan Davidson Architects pay homage to the building’s history through exposed brickwork and timber beams, as well as cast-iron columns.
Neptune Mill already has its first tenant lined up – Capital&Centric itself, which will be setting up its headquarters on the building’s first floor.
Capital&Centric is aiming for an EPC A rating for the building, which is due for a late summer completion.
The CBRE investment team manages both of the funds supporting the Neptune Mill conversion. Will Church, executive director of lending at CBRE, explained why the project was ideal for these groups.
He said: “This is exactly the type of project the North West Evergreen Fund and the Greater Manchester Low Carbon Fund was set up to support; taking obsolete buildings and turning them into modern, highly energy efficient workspaces, which will be the catalyst for the continued development and growth of this exciting area of Manchester.”
Tom Wilmot, joint managing director at Capital&Centric, leaned into the project’s regeneration potential for Piccadilly East. He stated that the developer had been an “early investor” in the area and had already built 200 homes, a hotel, and a public square in the vicinity.
“Neptune Mill will further add to the fabric of the neighbourhood, bringing something different to the mix with creative workspaces packed with character and a café bar on the ground floor that’ll be open to the public,” Wilmot said.
“Piccadilly East is really blossoming and, with businesses now being much more discerning about the type of workspace they want, we expect Neptune Mill will be a real draw for those looking to switch things up, particularly due to the building’s low carbon credentials.”
In addition to Avison Young and Jonathan Davidson Architects, the project team for Neptune Mill includes Graeme Ives, Shedkm, Rachel Hacking Ecology, Watt Energy & Consulting Engineers, Hepworth Acoustics, and Heyne Tillet Steel.
A contractor announcement is due early next year.
Learn more about the Neptune Mill project by searching application reference numbers 136865/FO/2023 and 136866/LO/2023 on Manchester City Council’s planning portal.