Nikal has signed a contract with a client of LaSalle Investment Management to finance the construction of a 15-storey 235-bed Premier Inn, a 6,000 sq ft Bar + Block Steakhouse Restaurant, 5,000 sq ft of retail units and a new half-an-acre public square at Exchange Square 2 in Birmingham.

Both the hotel and restaurant have been pre-let to Whitbread, the parent company for Premier Inn and Bar + Block.

The deal demonstrates confidence in the hotel and leisure market in Birmingham and is the second substantial financial investment to have been secured by Nikal this year during a national lockdown.

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In Lockdown 1.0, Nikal signed final contracts with Grainger plc, the UK's largest listed residential landlord and leader in the UK private rented sector, for the delivery of a 37-storey 375-home BTR tower also at Exchange Square 2.

Nikal Development Director, Darren Jones, said: "We are so pleased to have concluded this deal bringing together willing stakeholders – Birmingham City Council, Whitbread, LaSalle Investment Management and our contractors McAleer & Rushe. We are delighted to see our vision and that of our architect, Stephenson Studio, come to fruition with this phase of Exchange Square completing in Autumn 2022."

The £105m Phase 1 Exchange Square was also forward-funded by a client of LaSalle Investment Management. Known as Allegro, the development comprises 603 rental apartments in three buildings of 27, 14 and seven storeys and is supported by 27,500 sq ft of retail and leisure accommodation.