The GMCA is reported to have approved the huge loan from its Good Growth Fund to unlock delivery of developer Salboy’s £360m Viadux Phase 2 development, paving the way for the 76-storey Nobu Manchester tower and a separate affordable housing block.

Planning approval for the scheme was secured last year, but a report to the combined authority revealed the development did “not deliver a sufficient level of investor return and developer profit” to move ahead unaided.

The funding package is specifically designed to support construction of a 23-storey social rent tower containing 133 homes alongside the headline-grabbing skyscraper.

At 246m high, the Nobu-branded tower will become Manchester’s tallest building and the tallest tower outside London when completed. The development will deliver 452 private flats together with a 160-bedroom hotel and restaurant operated by Nobu Hospitality.

Hollywood actor and Nobu co-founder Robert De Niro is among the investors backing the project.

According to GMCA papers, a subsidised loan represented the most efficient financial structure to secure delivery of the affordable housing element and unlock the wider scheme.

Salboy welcomed the funding agreement, describing it as a key part of a long-standing strategy to maximise the affordable housing provision within the development.

The loan is expected to be repaid when the main tower completes in 2032.