Aviva Investors has agreed a £45m forward funding deal for Plot 14 at Circle Square, a hybrid building set to be occupied by a 158-bedroom hotel and multi-storey car park for 1,000 vehicles.
The Bruntwood scheme was originally designed by Feilden Clegg Bradley Studios, while Leach Rhodes Walker is the delivery architect. Russells Construction has been on site since last year, and completion is scheduled for August 2020.
The hotel and car park have both been let for initial terms of 25 years and 35 years respectively, although the occupiers are yet to be confirmed.
John Osborn, director and fund manager at Aviva Investors, said: “Manchester is one of our core cities within our UK real estate strategy, which focuses on investments in durable, high-quality real estate assets in strong economic locations. Occupying a prime location in Manchester city centre, Plot 14 is situated on a prominent site within the Circle Square development, which we expect to provide our portfolio with a strong source of long-term, inflation-linked income for investors.”
Chris Roberts, chief development officer at Bruntwood, said: “We’re pleased to have agreed a funding deal with Aviva Investors for the new car park and hotel at Circle Square, which represents a major step forward for both this building and the place as a whole. Circle Square will be an exciting new destination to live and work, offering an unparalleled experience to those visiting for both business and pleasure. We look forward to working with Aviva Investors as the project progresses.”
Christopher Dee acted for Aviva Investors and Addleshaw Goddard represented Bruntwood.