GMCA wins £140m Renaker loans tribunal but war of words continues

A judge has ruled that loans provided to Manchester’s most prolific developer were not offered at favourable rates.

Landowner Weis Group had sued the Greater Manchester Combined Authority over accusations it had “distorted” the property market with loans provided to Renaker.  

The Competition Appeal Tribunal has today ruled in favour of the GMCA, which described the judgement as “complete vindication” for its lending approach.

Despite the defeat, Weis Group is not backing down. A spokesperson said: “Leading counsel considers that there are strong grounds for an appeal.”

The firm also said the ruling raised “serious concerns” about Manchester City Council’s treatment of Renaker projects. The city council has been approached for comment.

Weis Group took the GMCA to court last year claiming it had breached the Subsidy Control Act in awarding two loans totalling £140m to the prolific Manchester developer. 

The judge presiding over the case said the decision-making process by GMCA was “perfectly rational and not inherently defective”. 

The judge added: “Underlying the application is an allegation that because of a possible cosy relationship with [Renaker chairman Daren] Whitaker, the Renaker Group was being provided with loans at unduly favourable rates. The Tribunal is satisfied that this is clearly not the case. 

“The 2024 Renaker loans went through a proper process and the terms and rates considered by persons with significant experience in development loans. The Tribunal has carefully scrutinised all the material and submissions and is satisfied that there was no subsidy in this case.” 

Read the full judgement

The loans came from the Greater Manchester Housing Investment Loans Fund and are a fraction of what has been loaned to Renaker overall, which is estimated to be more than £500m. 

This amounts to more than half of the £940m handed out through the fund altogether. 

Weis Group, owned by high-net-worth individual Aubrey Weis, claims the amount is even larger when all Renaker-linked vehicles are factored in. 

Following the judgement, the GMCA blasted the Weis Group for its conduct throughout the case. 

A GMCA spokesperson said: “Throughout this case there have been flagrant attempts to undermine our reputation through false allegations and insinuations.  

“Today’s judgment should be the final word on the matter. It definitively debunks the false idea that loans were administered corruptly or that there was a cosy relationship between GMCA officers and developers.”