Piccadilly Development Finance
Piccadilly is Manchester's eastern gateway undergoing transformational change, Piccadilly development finance funds property projects across this high-growth district, and Manchester Development Finance is the specialist broker that arranges competitive funding for developers from our panel of 50+ lenders. The convergence of HS2, the Mayfield regeneration, and the Station Quarter masterplan positions Piccadilly as the most significant development opportunity in Manchester for the coming decade.
The scale of investment flowing into the Piccadilly area is extraordinary. The planned HS2 terminus at Manchester Piccadilly station will reshape the eastern fringe of the city centre entirely, creating a new arrival experience and catalysing billions of pounds of associated development. Even ahead of HS2's completion, the anticipation of this infrastructure investment is already driving land value uplift and development activity. The 24-acre Mayfield site — formerly a disused railway depot and Royal Mail sorting office — has secured planning consent for a transformative mixed-use scheme that will deliver new homes, workspace, public park, and cultural facilities.
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Piccadilly Planning Context and Strategic Framework
The Piccadilly area is governed by a series of overlapping strategic frameworks that collectively establish it as one of Manchester's highest-priority development zones. The Piccadilly Strategic Regeneration Framework (SRF) provides the overarching planning guidance, setting out principles for building heights, land uses, movement corridors, and public realm. The framework envisions Piccadilly as a world-class arrival district that transitions seamlessly from the station to the city centre core.
The Mayfield SRF, adopted by Manchester City Council, provides specific guidance for the 24-acre Mayfield site south of Piccadilly station. This framework establishes the parameters for a phased mixed-use development delivering approximately 1,500 new homes, 1.6 million square feet of commercial space, 300,000 square feet of retail and leisure, and the new Mayfield Park — the first new public park in Manchester city centre for over a century. The Mayfield Partnership (comprising U+I, Manchester City Council, Transport for Greater Manchester, and LCR) is delivering the scheme in phases over a 10-15 year programme.
Manchester City Council's planning committee has shown strong support for development proposals within the Piccadilly area, particularly those that contribute to the district's transformation into a vibrant mixed-use quarter. Height and density policies within the SRF support tall buildings in appropriate locations, with several towers of 30+ storeys envisioned. For development finance purposes, the clear strategic vision and council support for Piccadilly development significantly reduces planning risk, which lenders assess carefully when underwriting proposals.
Recent and Approved Development Schemes in Piccadilly
The Piccadilly area has seen a surge of development activity as the market recognises the transformative potential of HS2 and the Mayfield scheme. Early movers have secured planning consent for significant residential and mixed-use schemes that are establishing the area's development character.
Mayfield Phase 1 is well advanced, with Mayfield Park opened to the public and the first residential and commercial buildings taking shape. The park's delivery has been a catalyst for surrounding development, demonstrating the Mayfield Partnership's commitment to placemaking alongside commercial development. The Depot, a curated food hall and events space within the Mayfield development, has established the area as a leisure destination in its own right.
Along London Road and the Piccadilly Basin corridor, several residential towers have secured planning consent, delivering hundreds of new apartments to an area that was previously characterised by surface car parks and low-rise commercial buildings. The Store Street corridor, connecting Piccadilly station to the Northern Quarter, has attracted boutique mixed-use proposals combining residential, workspace, and ground-floor retail. Ducie Street and the area around Piccadilly Gardens have also seen redevelopment proposals for underutilised sites.
For developers, the Piccadilly area presents both immediate opportunities and longer-term plays. Sites with existing planning consent can attract development finance now, while strategic land acquisitions in the HS2 impact zone offer potential for significant value uplift as the infrastructure programme progresses. Our team helps developers match the right funding structure to their specific Piccadilly opportunity, whether that is short-term development finance for a consented scheme or longer-term equity structures for strategic land positions.
Piccadilly Market Statistics and Lender Appetite
Piccadilly residential values are on an upward trajectory as the district's transformation gathers pace. Current new-build apartment prices range from £350 to £475 per square foot, with premium schemes near the station and Mayfield Park achieving the highest values. As HS2 delivery progresses and the Mayfield masterplan builds out, values are widely expected to converge with or exceed the Manchester prime city centre average. Rental yields in the Piccadilly area currently average 5.5% to 6.5% gross, supported by excellent transport connectivity and proximity to the city centre employment core.
Lender appetite for Piccadilly development schemes is strong but nuanced. Lenders are attracted by the area's transformative potential and the clear strategic frameworks that guide development. However, they will carefully assess the timing risk associated with HS2 and the phasing of the Mayfield masterplan. Schemes that are deliverable in the near term — those with planning consent, identified contractors, and clear sales or rental strategies — attract the most competitive terms. Senior development finance for consented Piccadilly schemes is available at 65-70% LTC with rates from 7.5% pa.
For speculative land and pre-planning proposals, the lending landscape differs. Specialist lenders and equity providers may consider pre-planning positions in the Piccadilly area given the strong strategic context, but terms will reflect the additional risk. Our expertise in structuring phased and multi-tranche facilities is particularly valuable for Piccadilly developers, where the funding requirement may evolve across planning, construction, and exit stages.
£350-£475
Price per sq ft (new build)
5.5%-6.5%
Gross rental yield
65-70%
Typical senior LTC
10
Active development schemes
Explore Neighbouring Development Areas
Piccadilly is connected to several of Manchester's most active development districts. The eastern fringe of the city centre links directly to Ancoats to the north-east and NOMA to the north, creating a corridor of regeneration activity that represents the most concentrated development opportunity in the city.
NOMA
£800M regeneration district north of Victoria station. Co-operative Group HQ and a growing residential community around Angel Meadow.
Ancoats
Manchester's fastest-growing neighbourhood to the north-east. Warehouse conversions, new-build schemes, and the city's strongest rental market.
Related Resources
- Our Development Finance Services — Funding for every stage of your Piccadilly project
- Case Studies — Real development finance deals across Manchester
- Loan Calculator — Estimate your Piccadilly development finance costs
- Contact Us — Discuss your Piccadilly scheme with our specialist team
- All Areas — Explore development hotspots across Greater Manchester
Developing in Manchester's Piccadilly Quarter?
From Mayfield to the Station Quarter, get indicative terms for your Piccadilly development within 48 hours. Our team understands the unique dynamics of this transforming district.