City's tallest tower plan edges closer with £50m loan

Plans for what would become the UK's tallest skyscraper outside London have moved a step closer to being built in Manchester after a £50m loan from a local authority.

The 76-storey tower building, Nobu Manchester, is set to be built in the city centre.

At 246m high (807ft), the tower will contain 452 flats, a restaurant and a 160-bed hotel. The development also includes a separate 23-storey tower offering 133 social rent homes.

Plans were approved by Manchester City Council last year but after progress stalled Greater Manchester Combined Authority (GMCA) has agreed to contribute a £50.4m loan into the project, the Local Democracy Reporting Service said.

According to a public report by GMCA, the loan was "the most efficient financial structure to secure delivery of the social rent development".

GMCA has been contacted for comment.

The loan has been granted from the authority's Good Growth Fund because, according to the report, the project could not proceed without support due to "rising viability challenges" and developer Salboy's "ambition to deliver one tower purely for social rent".

The GMCA paper said without support, the scheme was not going to "deliver a sufficient level of investor return and developer profit".

"Hence the most efficient financial structure to secure delivery of the social rent development, is to provide a subsidised loan that unlocks the viability of the overall scheme," it added.

It comes after the council said it was assured through the planning process that the scheme could be paid for.

Hollywood star Robert De Niro has been a key investor behind the development of the building which, once constructed, would be operated by Nobu Hospitality, a company co-owned by the Hollywood actor.

Confirming the funding agreement, a Salboy spokesman said they were "pleased".

"The funding demonstrates our strong working relationship with GMCA and city councillors, including Bev Craig, as we exceed expectations to deliver Manchester city centre's first purpose-built affordable housing tower in over 20 years.

"Including GMCA funding as part of the wider funding strategy for this scheme has been a longstanding aspiration, as it helps ensure that the affordable housing portion of the scheme will be as extensive as we want it to be.

"The funding was agreed last week."

According to public documents, the GMCA loan is set to be repaid "at completion of the main tower in 2032".

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