Capital & Centric has completed a funding agreement with the Greater Manchester Pension Fund to finance the construction of a 275-key hotel in Manchester. The £35.5 million project – built by Bowmer & Kirkland – is due to be completed in early 2022, with works starting this summer subject to coronavirus restrictions.

As previously announced by Capital & Centric, the development will be acquired and occupied by the Fattal Group following completion. It will then be operated under Fattal’s Leonardo Hotel brand, creating 90 full-time jobs in the city’s emerging Piccadilly East district.

Located on the corner of Adair Street and Great Ancoats Street, the 110,000ft² hotel has been designed by Stephenson Studio and will span 14 floors. Planters will adorn the side of the Jenga-inspired building to provide greenery, while there will also be a ground floor restaurant, bar and external terrace area spilling out onto a new public square, built by Capital & Centric for the City Council as part of the development.

“In these difficult times it’s even more important to be pushing ahead with our Adair Street hotel. It’s going to be a striking new addition to Manchester’s skyline and an anchor development in the Piccadilly East neighbourhood,” says Tim Heatley, co-founder of Capital & Centric. “With residents due to move into our Crusader and Phoenix developments later this year and plans for other homes in the area, this is going to be a thriving new part of the city. We’re also creating a new public square flanked by a café bar, providing some much needed outside space that anyone can enjoy.

“Yes, everyone’s been hit by the shock of coronavirus, and we’ve recently set up our building opposite the Mackie Mayor food hall as an emergency supplies depot. Manchester will bounce back and these deals are a positive reminder of how resilient our city region is.”

Gareth Conroy of Avison Young, property fund managers to the Greater Manchester Pension Fund, comments: “Times are tough but it’s important that we look to the future and plan for when the crisis is over. This hotel is an ambitious, high-quality project which sets the bar high for development in the city.”

Located behind Piccadilly train station, the Piccadilly East neighbourhood is becoming a hive of activity and was recently picked as one of the next greatest places to live. Capital & Centric are due to complete the Crusader Mill and Phoenix developments this year, both providing homes for owner occupiers in the city.

Capital & Centric and Kamani Property have also opened a Covid-19 emergency supplies depot in Manchester’s New Cross, opposite the Mackie Mayor food hall and live music venue Band on the Wall. The partners have been working up plans for the disused site, which was purchased earlier this year. In the meantime, they’ve spruced up the buildings and opened the doors to businesses who can help Greater Manchester’s most vulnerable and disadvantaged people.

The initiative is part of an appeal recently launched by the Greater Manchester Mayor’s Charity for essential supplies including food such as cereals and microwaveable meals, toothbrushes and toothpaste, soaps and wet wipes, and even white goods and IT equipment, so that those in isolation can keep in touch with the outside world. The list of essential supplies are on the Greater Manchester Mayors Charity website.