The Manchester-based developer has struck an agreement with the Greater Manchester Pension Fund to finance its planned Adair Street hotel scheme.
Capital & Centric also confirmed that Bowmer & Kirkland will be the lead contractor to build the 275-bedroom hotel, as reported by Place North West in October 2019.
Work on the Jenga-style block, which was designed by Stephenson Studio, is expected to start in the summer subject to the lifting of Government-imposed restrictions around Covid-19, with work anticipated to complete in early 2022.
The build cost is expected to be around £22m. Capital & Centric acquired the site from a private vendor for £2m in 2018.
The 14-storey, 110,000 sq ft hotel will be located on the corner of Great Ancoats Street and Adair Street close to Islington Wharf on the edge of Manchester city centre. The site is part of the city council’s wider Portugal Street East regeneration zone.
Once completed, the four-star hotel will be acquired and occupied by hotel operator Fattal Group under its Leonardo Hotels brand. A sale price of £35.5m has already been agreed, according to Capital & Centric.
The hotel will also have a ground floor restaurant, bar and external terrace area opening out onto a public square.
Tim Heatley, co-founder of Capital & Centric, said: “In these difficult times it’s even more important to be pushing ahead with our Adair Street hotel. It’s going to be a striking new addition to Manchester’s skyline and an anchor development in the Piccadilly East neighbourhood.
“Yes, everyone’s been hit by the shock of coronavirus but Manchester will bounce back and these deals are a positive reminder of how resilient our city region is.”
Gareth Conroy, director at Avison Young, which is acting as property fund manager to the Greater Manchester Pension Fund, said: “Times are tough but it’s important that we look to the future and plan for when the [health] crisis is over. This hotel is an ambitious, high-quality project that sets the bar high for development in the city.”