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CBRE Investment Management has completed a transaction to provide forward funding investment for the development of a new 188-bedroom Maldron Hotel in Manchester City Centre.
It comes as Dalata Hotel Group has agreed a 35-year lease on the new property to trade under the group’s Maldron Hotel brand.
The land was sold by Telereal Trillium, with JLL acting for their team. CBRE acted as funding advisor for developers RJR Securities.
Meanwhile, McAleer and Rushe has been appointed as contractor to deliver the new site, which is currently used as a surface overspill car park by BT. The site will be regenerated into a 17-storey hotel with 188 bedrooms, coffee lounge, bar, restaurant and gym facilities.
Richard Peskin, chairman and majority shareholder of RJR Securities, said: “Over two years ago we identified this site, being close to Manchester’s luxury and prime leisure core, as an ideal location for a hotel. Now, with the secure forward funding provided by CBRE Investment Management, we are able to fulfil our ambitions.”
Shane Casserly, corporate development director at Dalata Hotel Group plc, said: “We are delighted with the confirmation of the funding for our Maldron Hotel on Chapel Street in Manchester City Centre and look forward to construction commencing in the coming weeks.
“With Clayton Manchester City Centre just opened and a Maldron under development on Charles Street, Manchester is a market that we know well, and view our new hotel on Chapel Street as an ideal addition to our portfolio in the city.”
Will Kennon, executive director for CBRE, added: “Despite the obvious challenges that the hospitality sector has faced due to Covid, we are witnessing a selected return of investor appetite for the sector, and this project attracted strong fund interest owing to the combination of; undoubted location, indexed lease to the strong financial covenant of Dalata and the first-class project delivery team.”
Murray Burdis, senior strategy and disposals manager for Telereal Trillium, said: “This ambitious scheme will maximise the site’s potential and continue the regeneration of Chapel St and the wider Deansgate area with renowned hospitality provider Dalata and a new Maldron Hotel. We look forward to seeing the project commence in the coming weeks.”
