Nuffield Health has put construction of a £70m private hospital at the former Manchester Metropolitan University campus on Hathersage Road on hold owing to “market conditions”, less than six months after Kier was named as main contractor.
Kier was announced as main contractor on the project in July this year, but it is understood that the project has seen significant cost increases and viability issues.
Construction was initially supposed to begin by the end of the year, and complete in spring 2019, but the project has now been delayed.
In a statement to Place North West, Nuffield Health said: “As a result of the current market conditions in the industry, Nuffield Health has decided to put construction on hold.
“We remain committed to Manchester, as our investment in the Diagnostic centre, the two clubs and our corporate wellbeing business demonstrate.”
Nuffield also denied the delay was due to rising costs.
The hospital, designed by Pozzoni, was to include over 90,000 sq ft of facilities over three floors, with five operating theatres, a diagnostic suite, 50 patient rooms, and 30 consultation rooms.
Nuffield acquired the five-acre Elizabeth Gaskell campus in summer 2014 and first went for planning in November 2015 with a 130,000 sq ft scheme.
A revised planning application, which reduced the building in size and swapped rainscreen cladding for brick, was approved at the start of this year.
The professional team includes Deloitte as planning consultant, and BuroHappold as structural engineer.
Kier has been contacted for comment.