CBRE Investment Management has completed a transaction to provide forward funding investment to RJR Securities for the development of a new 188-bedroom Maldron Hotel on Chapel Street in Manchester City Centre.
Dalata Hotel Group plc, the largest hotel operator in Ireland with 45 hotels across the UK and Ireland, 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 RJR Securities, with Gleeds as Development Manager and Squire Patten Boggs as their legal advisors. Avison Young represented CBRE Investment Management.
McAleer & Rushe has been appointed as contractor to deliver the new Dalata Maldron Hotel, which will be situated in the Chapel Street/ Embankment Quarter. 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, commented:
“I was associated with many interesting development projects during my career at GPE and this one, due to my personal involvement, has certainly been among the most exciting. 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. My thanks go to them, along with the various teams who, in the most trying and complex of circumstances, demonstrated their commitment in getting us over the line with the land acquisition, planning, pre-letting and building contract for this top-class project, which will commence next month”.
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, 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.”
Murray Burdis, Senior Strategy & Disposals Manager for Telereal Trillium, said:
“We are delighted to conclude the sale of this surplus car parking site to RJR Securities and their development partners. 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.”
Peter Devlin, Contracts Director at McAleer & Rushe, comments: “We look forward to commencing construction next month and thank the teams at RJR Securities, CBRE Investment Management, Dalata Hotel Group, and all stakeholders involved for entrusting us with the safe delivery of the scheme. This is a credit to our team’s renowned expertise and reliability in delivering quality turnkey hotel developments and adds to our growing portfolio across major cities in the UK.”