Bluestocking Pension Scheme, advised by Indigo Planning, has secured planning permission to redevelop the former Nicklebys pub on Dale Street into a new food and drink establishment.
Expansion Horizons is to operate the new site which is to be known as Allotment.
The location was originally a pub but changed to a fashion warehouse and has been partially vacant for more than 12 months.
Niki Levene of Blue Stocking Pension Scheme said: "We're excited about this project that we feel will bring the vacant areas of the building back into use, re-engage the community and create a hub of thriving activity."
Nick Fillingham, associate director at Indigo Planning, added: "Through extensive preparation and pre-application consultation with Manchester City Council we were able to deliver this permission quickly, which isan important factor in development viability."