Developers have promised to transform the Birmingham skyline after winning permission for a £75 million mixed-use development.

Plans for the 25-storey Queensgate development - submitted by Irish developer Manor Park Developments working with D5 Architects - include a 259-bedroom hotel and 144-bedroom 'apart-hotel'.

Set in a prime location, Queensgate will be next to Birmingham’s Bond Street, the Mailbox, and recently-completed Cube development.

Mike Coffey, managing director of associated company New Manor Developments, said: “These aren’t pie in the sky proposals. We’ve a long-term lease already signed with leading European serviced-apartment operator, StayCity. We will also announce an operator for the hotel very soon.

“Queensgate will sit comfortably among Birmingham’s jewels in the city’s ongoing architectural renaissance. It will literally transform the city’s skyline on the west side into the bargain.”

New Manor Developments – the company behind the Boxworks development in the city’s jewellery quarter - predicts the project will create around 500 new jobs both in construction and the ongoing travel and leisure services.

“The fact that all of the space has been pre-let is a sure-fire sign of confidence returning to the region’s property market,” added Coffey. “The project will be another example of construction aiding the economic rejuvenation of Birmingham city centre.”

Andrew Fowler, property director for StayCity, said: “choosing Queensgate was an easy decision because of its prime location – a moment’s walk from the soon to be refurbished New Street Station. There are very few opportunities left to create a distinctive landmark hotel and we consider we’ve got one of them.

“The location ticks all the boxes and will appeal to our business and leisure customers alike; stepping out of the building will put them on the doorstep of the main shopping, entertainment and nightlife areas as well some of Birmingham’s best cultural destinations. The main business and financial districts are also just a short walk.”

New Manor Developments expects construction to begin in March 2011 with completion estimated in early 2013. Acquisition agents Maguire Jackson advised the purchasers with McNaughton Associates advising the vendor.