Trafford loans Salboy another £16m for Castle Irwell
Having already given the developer £31m for the Salford housing scheme, the authority has committed an additional £16m for the project’s final phase.
Trafford Council has backed each stage of Salboy’s 367-home Castle Irwell project, the redevelopment of the former student village of the same name into houses.
A £19.6m loan for phase one has already been repaid in full. Trafford loaned Salboy an additional £11.4m for phase two and its phase three facility will take the total amount lent for the scheme to £47m.
Phase three of the £120m redevelopment project will see 104 homes delivered across a 6.7-acre chunk of the wider 36-acre site.
The original plan for this part pf the site had been for 237 apartments across a range of blocks. However, the proposals were tweaked after consultation with the public.
Salboy’s sister company Domis Construction has completed the 157-home phase one and is nearing completion of the 106-home phase two.
Trafford Council has calculated that the latest loan will provide a revenue return of £250,000 in 2023/24.
Numerous councils such as Slough and Thurrock have recently gone bankrupt because of investment such as this in property.Trafford council should not be gambling future of its citizens like this.
By Tony Smith
Trafford Council are advancing the funding for this project. ie taking the risk. The figure quoted for the investment return for 2023/24 seems very low for a further advance of £16m. What we do not know from the article is the anticipated profit the developer will make on this development.
By Tony Ward