The developer has acquired a two-acre site off Dantzic Street that has planning consent for 415 homes.
Far East Consortium bought the site from Leftfield Investment Holdings, which won consent for a residential scheme in 2019.
The sale price was not disclosed.
Having agreed terms on the land deal, the developer is now working with architect Hawkins\Brown to work up a new scheme for the site.
Other members of the design team include ROC Consulting, Futureserv and WSP. Leftfield’s scheme was designed by SimpsonHaugh Architects with Paul Butler Associates advising on planning.
The plot, located next to FEC’s 634-home Victoria Riverside development, falls within the Red Bank neighbourhood, part of the £4bn Victoria North masterplan FEC is delivering in partnership with Manchester City Council.
Red Bank is earmarked for 5,500 homes and a nine-are public part on a largely derelict swathe of former industrial land along the River Irk. The masterplan for the area has been drawn up by designed by Maccreanor Lavington and Schulze+Grassov.
In November, Manchester City Council lodged an application to carry out preliminary work to prepare the 37-acre Red Bank for development.
FEC now owns more than 35 acres within Victoria North, around 9% of the total 400-acre masterplan, having invested around £30m in acquisitions in the last five years.
Tom Pool, senior development manager at FEC, said: “This site will form an important part of the first phases of development in Red Bank as part of Victoria North. We have been working hard to ensure that our strategic acquisitions are acquired off-market at a good value to allow us to keep momentum with our development plans.
“Our land assembly strategy for this initial phase means we will now be able to deliver homes at the pace and scale we require to transform this part of Manchester into a thriving residential community.”