Plans to deliver Manchester’s most ambitious skyscraper development have received a major boost after a £50m funding package helped secure the future of the landmark Viadux Phase 2 scheme.
The Greater Manchester Combined Authority (GMCA) has stepped in with a significant rescue loan to bridge a viability gap that had threatened progress on the £360m development. The funding, approved through the authority’s Good Growth Fund, is expected to unlock construction of both the headline-grabbing Nobu Manchester tower and a dedicated affordable housing block.
The intervention follows concerns that the project, despite securing planning approval last year, did not generate sufficient investor returns or developer profit to proceed without additional support. A report submitted to the combined authority highlighted the financial challenges facing the scheme, prompting the decision to provide targeted funding.
The loan will specifically support the construction of a 23-storey social rent tower delivering 133 affordable homes. This element sits alongside the wider Viadux Phase 2 development, which is set to transform Manchester’s skyline and further strengthen the city’s reputation as one of the UK’s leading development hotspots.
At the heart of the scheme is the proposed 76-storey Nobu Manchester tower. Rising to an impressive 246 metres, the skyscraper is set to become the tallest building in Manchester and the tallest tower anywhere in the UK outside London upon completion.
The development will provide 452 private residential apartments alongside a 160-bedroom luxury hotel and restaurant operated by internationally renowned hospitality brand Nobu. The project has attracted significant attention both within the property sector and beyond, with Hollywood actor and Nobu co-founder Robert De Niro among the investors supporting the development.
GMCA officials concluded that a subsidised loan represented the most effective and efficient funding structure to ensure delivery of the affordable housing element while simultaneously unlocking the wider regeneration benefits of the project.
For developer Salboy, the funding agreement marks an important milestone in bringing the scheme forward. The company welcomed the decision, describing it as a crucial component of its long-term strategy to maximise affordable housing provision within the development while maintaining the viability of the wider project.
Beyond its architectural significance, the scheme is expected to deliver a range of economic and social benefits, including new homes, employment opportunities, hospitality investment and further regeneration in the city centre. The inclusion of affordable housing within such a high-profile development also reflects growing efforts to balance major city-centre growth with the need for accessible housing provision.
With funding now secured, construction of the affordable housing tower can move forward, helping to unlock the wider development and ensuring Manchester’s tallest-ever building remains on track for delivery.
The £50m loan is expected to be repaid once the main tower reaches completion, which is currently anticipated in 2032. When finished, the development will not only redefine Manchester’s skyline but also stand as one of the most significant mixed-use projects delivered in the UK outside the capital.
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