Paragon stumps up £37m to back Talbot Mill transformation

Capital&Centric is repurposing one of Manchester’s oldest surviving Victorian mills into 190 rental homes in a £55m project, now supported by the bank.

C&C will redevelop the historic mill and create a new-build neighbouring 10-storey apartment block, work in which began on site in May 2024.

Built in 1855, the imposing red-brick mill on Castlefield’s Ellesmere Street was a product of Manchester’s textile boom, with a canalside location now set to offer residents a hidden garden amenity.

Tom Wilmot, joint managing director at Capital&Centric, said: “We love to restore and repurpose historic buildings but as one of Manchester’s oldest mills, Talbot Mill is something a bit different, and we’re buzzing to be bringing it back to its former glory.

“It had a huge role to play in the industrial revolution in the city and now it gets to be part of the city’s future. We’re retaining as many features as we can, to keep the history of the mill alive and so that our residents can enjoy becoming custodians of the past whilst enjoying all the trappings of modern-day living.”

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Paragon launched its build-to-rent loan programme in the specialist development sector early last year.

Simon Dekker, senior relationship director at Paragon led on the deal, said: “We’re really pleased to provide finance for Capital&Centric at Talbot Mill, they’re pioneering in the regeneration space and it’s a scheme that will deliver their trademark cool homes, with lush gardens and the stunning architecture they’ve become known for.

“We’re really looking forward to seeing the finished development and working with the Capital&Centric team again in the future.”

Since its peak during the booming cotton years the mill has been used for such purposes as a mushroom farm in the 1980s and more recently the set of a period drama and an art exhibition.

Talbot Mill’s redevelopment adds to C&C’s list of Manchester projects including Crusader Mill, Ducie Street Warehouse and Neptune Mill in Piccadilly East, and Minshull Warehouse and Minto&Turner at the Kampus neighbourhood near Canal Street.

The developer said it is developing Talbot Mill as an investment, which will be retained for rent, using a model it has employed previously elsewhere.

Talbot Mill is one of eight live construction sites for the firm at present. As well as a raft of schemes in its home territory, the firm is busy elsewhere, in particular Sheffield where it is advancing the next stage of the Mesters’ Village masterplan and the redevelopment of the Cannon Brewery site.

Paragon Bank Development Finance is part of the Paragon Banking Group, a FTSE 250 group based in Solihull. Established in 1985, the group has more than £16bn of loan assets under management and manages more than 340,000 customer accounts.