CBRE funds development of Maldron Hotel in Manchester
CBRE Investment Management has completed a deal to provide forward funding to RJR Securities for the development of a hotel in Manchester city centre.
The 188-bedroom hotel will be run by Dalata Hotel Group, which has agreed a 35-year lease and will operate it under the group’s Maldron Hotel brand.
The hotel has a gross development value of £30m and a funding yield of 4.36%.
CBRE Investment Management has completed a deal to provide forward funding to RJR Securities for the development of a hotel in Manchester city centre.
The 188-bedroom hotel will be run by Dalata Hotel Group, which has agreed a 35-year lease and will operate it under the group’s Maldron Hotel brand.
The hotel has a gross development value of £30m and a funding yield of 4.36%.
The Chapel Street site, currently used as a car park, will be regenerated by McAleer & Rushe into a 17-storey building with a coffee lounge, bar, restaurant and gym facilities.
CBRE executive director Will Kennon said: “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.”
The land was sold by Telereal Trillium, which was advised by JLL. CBRE acted as funding adviser for RJR Securities. Avison Young represented CBRE Investment Management.
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Image courtesy of CBRE
