Row over £14.6m contributions prompts second Carrington industrial appeal
BlackRock UK Property Fund’s plans for the 450,000 sq ft second phase of Voltage Park were refused late last year after Trafford Council demanded £14.6m from the developer to support the delivery of infrastructure within the growth location, significantly more than the £1m the developer had budgeted for.
The real estate giant is the second developer to appeal a rejection in relation to Carrington infrastructure contributions.
Peel is currently awaiting a decision from the Planning Inspectorate after the council rejected plans for a 167,000 sq ft industrial scheme on a 26-acre former landfill site in Carrington because of a disagreement about how much the latter should contribute towards the construction of the £76m Carrington Relief Road and other infrastructure.
In order to fund the delivery of the road and unlock land for redevelopment, Trafford uses a formula to calculate how much developers need to contribute.
The formula, adopted in February 2024, seeks £346.80 per square metre of gross floorspace for employment schemes such as the ones proposed by Peel and BlackRock.
In the case of Voltage Park, the amount Trafford sought from the developer for its planned 450,000 sq ft scheme was £14.6m. Peel was asked to agree to a £5.4m contribution.
BlackRock has “argued that this is substantially higher than the previous contribution formula, which would have amounted to £1m”, according to a council report prior to the refusal of the scheme last December.
Trafford said that failure to provide the amount stipulated by the formula would “obstruct future infrastructure provision in New Carrington”, which is earmarked for 3.7m sq ft of industrial space and 5,000 homes in the Places for Everyone joint spatial plan for Greater Manchester.
BNP Paribas, which is representing BlackRock, has now lodged an appeal with the Planning Inspectorate. The inquiry is scheduled for 28 October.
The formula used for calculating contributions in New Carrington was adopted to ensure that development could come forward while making sure funds are being collected to deliver various infrastructure projects down the line.
It has resulted in significant increases in the levels of developer contributions expected, stretching the viability of projects.
The formula includes a 30% contingency buffer and developers are able to claim cash back if it is determined in future they have overpaid.
BlackRock already has permission for the larger first phase of Voltage Park, which spans 90 acres off Manchester Road. Phase one, comprising around 700,000 sq ft, was approved in 2022 prior to the introduction of the formula.
On the face of it £14.6 million does sound a bit steep. Trafford council could drive away employment opportunities.
By Anonymous
It does sound a steep contribution (& a 30% contingency!) although I can’t see it driving away employment opportunities unless they mothball it which wouldn’t make sense ; they’ll just have to write down the land value and take it on the chin if they dont win their appeal. If you want infrastructure someone has to pay for it.
By Jack Pott
I just wish blackrocks plans for the site included retail. There is a similar set up just past little hulton that has an Aldi, a burger king and a few other things now but the rest all industrial like here.
By Anonymous