The funding will be used by social impact developers Capital&Centric to create 190 rental homes on the site of the Talbot Mill.

Construction began in May 2024, with the £55m project creating a 10-storey apartment block on the site.

"We're really pleased to provide finance for Capital&Centric at Talbot Mill, they’re pioneering in the regeneration space and it’s a scheme that will deliver their trademark cool homes, with lush gardens and the stunning architecture they’ve become known for,” said Simon Dekker, senior relationship director at Paragon who led on the deal.

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“We're really looking forward to seeing the finished development and working with the Capital&Centric team again in the future.”

Tom Wilmot, joint managing director at Capital&Centric, added: “We love to restore and repurpose historic buildings but as one of Manchester’s oldest mills, Talbot Mill is something a bit different, and we’re buzzing to be bringing it back to its former glory.

“It had a huge role to play in the industrial revolution in the city and now it gets to be part of the city’s future.

“We’re retaining as many features as we can, to keep the history of the mill alive and so that our residents can enjoy becoming custodians of the past whilst enjoying all the trappings of modern-day living.”