Manchester Metropolitan University said work on its Hulme campus project will continue apace despite the withdrawal of funding from the North West Development Agency.
The NWDA had pledged £8.5m towards the £150m project but the grant funding was cancelled along with support for 100 other projects on 26 July.
A spokeswoman for MMU said the project team for the new campus was considering options such as reducing the scale of later phases or finding cost savings from the current design. The Hulme campus received £10m from the Higher Education Funding Council for England and land worth £10m from Manchester City Council. The campus was designed by John McAslan & Partners and masterplanned by Drivers Jonas.
The update came as MMU confirmed the appointment of advisors on elements of the campus. Cost consultancy Gardiner & Theobald LLP will advise on the new 235,000 sq ft building for the Institute of Education and the Faculty of Health, Psychology & Social Care.
MMU also announced the appointment of engineers Ove Arup & Partners and quantity surveyors Turner & Townsend LLP on the new £25m arts and design building on the All Saints campus. The project involves the refurbishment of an existing building, the demolition of another building of 45,000 sq ft and a new build of 81,000 sq ft designed by Fielden Clegg Bradley. The art and design studios are funded solely by MMU.