Catalyst Capital, the European real estate investment, development and asset management firm, in a joint venture with Sir Robert McAlpine Capital Ventures (SRMCV), the development arm of the Sir Robert McAlpine group, is to start development today of a 17-storey, 278-bedroom Maldron hotel in central Manchester.
The £47 million development is located on Charles Street, opposite Circle Square and sits within the strategic Oxford Road Development Corridor.Having secured Dalata Hotel Group to lease the hotel with its Maldron brand, Catalyst obtained planning consent for the development on 31 May this year. Aviva Investors is forward-funding the development and McAleer & Rushe has been appointed to carry out the Design & Build works.
Dan White, development director at Catalyst Capital, said: "We are excited to be on site today with McAleer & Rushe and to see this development move to the construction stage. The development of this Maldron hotel will add to the Oxford Road corridor's strategic importance in the city. The high quality of the hotel's design will complement the Circle Square masterplan opposite and should be completed in a similar timeframe".
John Parnell, project director of Sir Robert McAlpine Capital Ventures, stated: "Today marks the beginning of another significant project for SRMCV and continues our successful joint venture relationship with Catalyst Capital".
Shane Casserly, head of development & strategy of Dalata Hotel Group plc, commented: "We are delighted to see construction begin on our new 4-star Maldron hotel in such an exciting location on Charles Street in Manchester. This will be Dalata's third hotel in Manchester as we already successfully operate a Clayton Hotel at Manchester Airport and are committed to operating a new Clayton Hotel on Portland Street, currently under construction and scheduled to open in mid-2021".
Rhys Evans, director, real estate at Aviva Investors, said: "Manchester is a core investment location for our real assets business and this acquisition is key to our wider strategy in this market. The asset benefits from a 35-year index-linked lease secured to a quality hotel operator and thus offers a long-term, resilient income stream".