£45m funding deal completed for city centre development
A £45m deal has been completed to fund a new hotel and car park for over 1,000 cars in Manchester city centre.
Aviva Investors has completed the funding of the 432,000 sq ft site on the former BBC offices in Oxford Road.
The development will include 158-bed hotel and multi-storey car park for more than 1,000 cars.
The site in the Circle Square development is on Brook Street in the heart of Manchester’s innovation district.
Both of the key features of the plot – the hotel and car park – have been let for an initial term of 25 years and 35 years respectively.
The two buildings are due to be completed by next August.
John Osborn, director of real estate 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 property firm Bruntwood, added: “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 LLP acted as adviser to Aviva Investors and Addleshaw Goddard as legal adviser to Bruntwood.