£100m Manchester PBSA funding deal in the balance

McLaren Property claims a nine-figure funding deal hinges on the city council granting a request to allow the developer to let out a proportion of rooms within its Upper Brook Street scheme in Manchester out of term time.

McLaren, which secured consent for its 737-bed project as part of a wider £450m masterplan in 2024, wants more flexibility over when the rooms can be used but its request was shot down by Manchester City Council’s planning committee yesterday.

Under the terms of the existing planning agreement, the scheme can only be occupied during university semesters.

McLaren reluctantly accepted the condition originally, but has since sought to tweak the consent so that 258 rooms – 35% of the total – could be used during the summer holidays.

The rooms would be used during this period by “students attending summer schools, undertaking internships or placements, or transitioning between tenancies only”, according to a city council report.

McLaren’s decision to seek an amendment to the condition was prompted by “discussions with funding partners”, according to a cover letter prepared by AshtonHale.

“The restrictions imposed by [the condition] are problematic and could jeopardise the delivery of the project”, the cover letter states.

Speaking in the council chamber yesterday, Neil Lucas, founder of AshtonHale, said: “McLaren has now secured funding terms from a tier one financial institution to direct over £100m in to the city that secures this site’s delivery.

“This funding, however, is dependent on a revision to the current restriction [around non-term-time lettings].”

Manchester City Council planning director Dave Roscoe said the condition restricting occupation out of term time was “unusual” and was not normally attached to PBSA applications.

Against officer recommendations, the city council’s planning committee was minded to refuse the application, meaning it will return for further deliberation at a later date.

The committee was concerned about the potential impacts of lifting the condition on local residents.

David Atherton, divisional director at McLaren Property, said: “We are confident that the concerns raised can be successfully addressed.

“I am in no doubt that we are all aligned in supporting the flow of significant investment towards Manchester and we will continue to work with stakeholders to achieve the same and in accordance with planning policy.”