Warrington lends additional £9m to Salboy
A total of £84.5m has now been provided by the council to the developer to support its £300m Viadux residential scheme in Manchester.
A report to Warrington Council’s audit and corporate governance committee states that the authority had awarded a further loan of £9.3m to Salboy in the final quarter of 2022.
Warrington’s involvement in the Viadux project began at the end of 2021 when the council lent around £75m to the developer.
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.
The council’s current loan portfolio totals in excess of £1bn, according to the report.
The additional Viadux loan will go towards the continued delivery of the project, the first phase of which is well underway.
The first of two buildings will provide 375 homes across 40 storeys.
The second part of the project had previously been planned as a 15-storey office block. However, Salboy is reworking the proposals, pivoting towards a second residential tower understood to be taller than the first.
Plans for Viadux were approved in 2017 and construction began three years later. The scheme was originally being delivered in joint venture with Ask Developments.
However, Salboy bought Ask out of the partnership in 2021.
Contractor Domis is delivering the SimpsonHaugh-designed scheme, located on the site of the former Bauer Millet unit off Albion Street, close to Manchester Central Convention Complex.
Does Manchester need yet more flats? Folk are still choosing to work from home where possible, as shown by office blocks being turned into housing schemes, as no demand for large offices.
By Anonymous
Any mention of improving the lives of Warrington residents – you know, the ones who pay for these “investments”?
By Ukcerberus
Warrington seems to do well from it`s property investments, so much so that they make enough surpluses to easily offset any central government funding cuts.
By Anonymous
@Anonymous, If there was no demand they wouldn’t be building them? the market dictates what gets built.
By Anonymous
Looking forward to my council tax bill falling once the rents start being paid or them sticking the metrolink on the old Altrincham – Warrington line. Yeah right…
By BC
@ Anon…Can’t think of any offices being turned into Residential in Manchester. I think you’re getting confused with somewhere else.
By Dave
On a day when SVB just got rescued by regulators I hope it makes people thoughtful about a local authority becoming a significant commercial lender, and using lending facilities that have an implicit state guarantee. What could go wrong?
By Rich X
It’s not supply and demand we should be questioning anyway, more why are we allowing this when there is a climate crisis?
By Phi
@Phil, these new builds are probably more energy efficient than most of the UK housing stock which lack insulation and use more energy to heat. Also there are a shortage of housing in this country, where should people live?
By Anonymous
why on earther is Warrington Council lending money to a Manchester development business owned by Fred Done (billionaire owner of Betfred), who is tenth on the sunday times rich list.
By Taxpayerscash