BAM will start construction this summer of a 16-storey tower at First Street, Manchester.
The date was confirmed after developer Ask Real Estate, in a joint venture with the Richardson family and PATRIZIA, exchanged a pre-let agreement with Whitbread for a 200-bedroom Premier Inn hotel occupying the top five floors.
Completion of the mixed-use development is due in early 2021.
Premier Inn is the first confirmed tenant in the new building at First Street and will occupy floors 12-16, with 160,000 sq ft of Grade A offices on floors 1-11.
John Hughes, Managing Director of Ask Real Estate, said: “With a projected lack of Grade A office space in the city from 2021 we will be bringing forward much needed, high-quality and flexible office space to a buoyant market and are delighted to announce Premier Inn as the building’s first tenant.”
The deal will simultaneously see a second joint venture partnership between Ask Real Estate, the Richardson family and Whitbread bring forward a planning application to redevelop the existing Premier Inn Deansgate Locks hotel site, adjacent to First Street, with a separate c.480,000 sq ft mixed-use scheme.
A planning application for the development is expected to be submitted to Manchester City Council in May 2019.
Nicholas Johnston, Acquisition Manager for Northern England at Premier Inn, said: “As a major investor in Manchester we are continually looking at our portfolio of Premier Inn hotels to ensure we are in the best possible locations and provide a consistently high-quality experience for our guests.
“The decision to redevelop the Premier Inn Deansgate Locks site and bring a latest generation Premier Inn hotel to First Street reflects this.
“It’s an excellent opportunity to improve our portfolio in the city and be part of one of Manchester’s most successful business and leisure destinations.”
The architect for the building is Jon Matthews Architects. Deloitte advised on planning for the project and DWF were Whitbread’s legal advisor on the transactions.
An updated masterplan for the First Street area was approved by Manchester City Council last year and will see Ask Real Estate, the Richardson family and PATRIZIA develop up to 1m sq ft of offices at First Street.
The estate is home to the INNSIDE Manchester hotel, a 279-room Vita Student scheme, a 700-space Q-Park, the HOME arts venue and a host of bars, leisure operators and restaurants.