The office block (second building from the right) could be scrapped in favour of more apartments. Credit: via Law of the Few

Warrington Council invests in Salboy’s £300m Viadux 

The council has agreed to provide a finance facility to fund the Manchester project, which features a 40-storey residential tower and 240,000 sq ft of offices. 

CBRE Loan Services, which acted for Warrington Council, agreed terms on the Viadux deal at the end of 2021, according to Companies House filings.

Simon Ismail, managing director of Salboy said: “We are happy to be working with Warrington Council, which joins a list of important funding partners we work with throughout our portfolio. 

“Viadux is progressing at pace with the first 17-metre high mega-column, that will go on to support the 40-storey residential building, now in place.”  

The value of the investment has not been disclosed and Warrington Council was contacted for comment.

Warrington’s investment in the £300m Viadux project follows a £2.8m loan from the Greater Manchester Combined Authority that was agreed in March 2021. 

Viadux was originally being delivered in joint venture with Ask Developments. However, last year the vehicle behind the 375-apartment scheme – Ask Capital – changed its name to Salboy Capital, and Ask directors John Hughes and Jonathan Cross resigned. 

Contractor Domis is delivering the SimpsonHaugh-designed scheme on the site of the former Bauer Millet unit off Albion Street, close to Manchester Central Convention Complex. 

Warrington Council has a track record of large property investments. The authority bought Birchwood Park in 2017 for more than £200m and is also forward funding the construction of BT’s new Manchester head office at New Bailey, as revealed by Place North West.

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What returns are the council making on these deals?

By Meeseeks

Outrageous use of public money.

By The Old Faithful

I’m from Manchester but surely the council should be keeping the money in Warrington?

By 1981

so another investment from a council already £1.5bn in debt! just lost millions in a failed energy company but who cares its only tax payers money

By Euan Hall

There are some good PRS schemes for Warrington to invest in, ironically that are in Warrington.

By PB

Warrington has just failed the Housing Delivery Test. Again. Surely this money should have gone into flats in the centre of Warrington?

By Peter Black

To the above commenters, they aren’t just giving public money away willy-nilly. They are investing it in order to make a return that can then be reinvested into Warrington. I don’t live in California but I invest in companies over there because you can make a bigger return then local companies. I then cash out and spend that money in Manchester. They are just doing the same thing.

By Egg

oh dear. there are some people on here that just dont understand the concept of investing at all !

By anonymous

Warrington BC’s last investment was £52m into Together Energy. That’s roughly half its annual revenues. It went bust last month. When will they learn?

By Mike Riddell

Yes some people really need to educate themselves on how finance and economics work before commenting. As egg says they arnt giving this money away for free. The returns on this will be much bigger than anything they can get in Warrington and less risky. Money that will then go back into Warrington. They seem a good council who actually seem to have some good business acumen for once if you ask me.

By Bob

What Egg said. The returns on investing in this scheme will be far better than Warrington and its good business.
An energy company failure is hardly their fault given what had happened recently and with successful investments comes some failure. Can’t win on everyone, all the time surely.

By MIchael Howard urbanbubble

Bob – what’s your evidence for WBC’s ‘acumen’?

They invested £30 million in a startup bank in exchange for 33% shareholding. The other investors paid £3 million for 67% shareholding.

They invested £52 million in a failed energy company. It was already failing when they invested.

By Jim

People working in partnership can only be a good thing to help neighbouring authorities. I know birchwood park – lovely surroundings and walks which boasts a lovely pond and swans and a coffee shop/restaurant. Great place to relax and more

By Karen Pennington

Some of the comments above are nothing short of embarrassing. Please educate yourselves on what investment means.

By New Wave

Does Warrington have any social issues in the town that might need some funding, does it have ample swimming pools, libraries, and adequate housing? Are the streets and parks looking immaculate to an extent that this money is gambled on a property venture.

By Anonymous

What a complicated and fascinating project. Absolutely fantastic.

By Tom

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