"Flexibility is key", says firm behind tower plans

THE developer behind plans to build a 42-storey tower near the Mancunian Way is confident that its “market-driven” model will help to secure the funding to get the scheme off the ground.

Chelmer Developments’ director Mike Bathurst told TheBusinessDesk.com: “You can see that we’re spending a lot on putting the right scheme forwards. We’re here to build it.”

Mr Bathurst was speaking at a consultation meeting where the team behind the River St serviced living project had faced a steady stream of questions from interested observers, many of whom focused on the same issue – whether the finance could be raised to build it.

It is easy to understand the scepticism. Manchester has seen plenty of tower schemes proposed in recent years, with the Eastgate Tower, Albany Crown and Canopus all failing to get off the ground. Beetham Tower did, but it has not proved to be the most profitable of ventures for developer The Beetham Organization, with operating company Beetham Manchester Ltd appointing administrators last year.

Therefore, when a little-known, London-based company which has a couple of hotel and one-off luxury residential schemes behind it arrives and proposes to build a 42-storey tower, it is bound to raise questions.

Mr Bathurst is a former partner at Edwards & Co who has been charged with leading the project. He said the team it has chosen to develop the project – Ian Simpson Architects, engineers WSP, quantity surveyors Davis Langdon and planning advisors GVA – reflects its intentions.

“We were keen to work with Ian Simpson. His reputation and vision in terms of this city were very important to us.”

He argued that the funding details could not be ironed out until the outcome of the planning process and the nature of any conditions attached are known. Plans are due to be submitted within weeks and a decision on whether to approve the scheme should be made by October.

“What I can say is that we won’t be looking for more than 60% (of loan-to-value). And we have some very positive support from the banks.

“This model is different – that’s what’s the key.

“We’re providing an offer that is new but its essence its its flexibility. And it’s a model that will work in any market.”

The proposal being put forwards is for a building containing 600 bedrooms made up of one, two, three and four-bed apartments. In total, it will contain 1,200 beds and rooms will be modular to allow for sizes to be adapted according to demand.

Chelmer has also brought in Hamilton Hotel Partners – with whom a sister firm already has a management relationship – to act as operating partner for the project.

Hamilton is run by Frank Croston and Chris Evans, who have both worked in senior positions at companies like Intercontinental Hotels, Starwood and Marriott. Hamilton also either currently manages (or has previously managed) hotels for Holiday Inn, Raffles, Sheraton and Radisson Blu.

GVA has been advising Chelmer since selling the site – through its role as Law of Property Act receivers – in April 2011.

Planning director Stephen Bell said that the project team has been working with the city council on the model.

“We saw a demand for a short-term letting residential offer with easy-in, easy out terms. Guests will have a menu to choose from and can use as many or as few services as they require, from laundry services and linen hire through to 24-hour management and service.”

The building will feature several roof gardens and “airport lounge”-style areas to create a community among guests. It will have its own cafe/restaurant and convenience store downstairs, and a number of conference/meeting rooms for hire at ground level, which will also be open to non-residents.

The project has been designed around a series of blocks which step up in height around the main tower. Project architect James Hind said its design gives “careful consideration” to the surrounding buildings and had been adapted so that it was not obtrusive to the City South scheme nearby.

He argued that Chelmer has showed “great vision” in creating a new concept for short-term living.

“It’s a residential development that is driven entirely by demand and the need for short-term accommodation, It’s great for Manchester to have a project like this developed here and it brings back into use a site that’s an eyesore,” he said.

“We feel we’ve got a development which works, and particularly one that matches the growth and housing operations of the city.”

Mr Bathurst said the design “has been fine-tuned over the past few months and it is still being fine-tuned throughout the consultation process”.

He added that its proposal would sit well with regeneration that had already taken place at the Downing student tower blocks and Manchester Metropolitan University campus improvement nearby, and with Ask Developments’ ongoing aspirations for First Street.

“We believe that our project has a real synergy with that.”