Renaker subsidiary LQ Developments was granted a loan of £23m for 490 flats in Castlefield last year

GM housing fund allocation nears £100m

The Greater Manchester housing fund has confirmed its ninth loan since it launched last June, taking the total committed from the fund to almost £100m, a third of the total pot.

At a meeting of the Greater Manchester Combined Authority on Friday 27 May, a loan of £1.37m was granted to the development of 24 three- and four-bedroom homes on the former Walmersley brickworks site in Bury.

The loan took the total offered so far by the fund to £97.4m.

The £300m housing fund was created as part of the region’s devolution agreement. The fund launched in June 2015 and has a ten-year lifetime, targeting up to 15,000 new homes.

Loan funding is fully recoverable and it is estimated that the money could be used 2.5 times over the fund’s life, delivering a total residential development value of £1.5bn.

At the same meeting, Eamonn Boylan, chief executive of Stockport Council and portfolio lead for housing, presented his semi-annual report for from 1 November 2015 to 31 March 2016, in which he updated on allocations from the fund so far.

Schemes that have loans agreed are:

  • £23.71m to LQ Developments, a subsidiary of Renaker
  • £42.5m for the Wilburn Street Basin, by WB Developments
  • £9.741m to Belgravia Living for Tariff Street
  • £1.45m to Roman Investments, in Oldham
  • £10.3m to Peel and Rowlinson Developments
  • £3.76m to THT Developments for Trafford
  • £957,654 to Wiggett Homes in Crumpsall

In August 2015, £17m was awarded to FICM, Fred Done’s development vehicle, for a 380-unit PRS scheme on Trinity Way, but the developer then declined to take up the loan offer.

Currently two projects are drawing down funds, one has signed a facility agreement, and five have been approved by the Combined Authority.

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Good to see a mixture of schemes in terms of location, size and type. Will be interesting to understand how the fund can support Starter Homes when they begin to progress…

By Scott