Weis Group appeals ruling over GMCA’s Renaker loans
Earlier this year, the landowner lost its case arguing that the combined authority had “distorted” the property market with loans provided to the skyscraper developer. Now, the Court of Appeal has agreed to weigh in.
A hearing is tentatively scheduled for July next year.
Weis Group’s argument centres on two loans totalling £140m granted to Renaker by Greater Manchester Combined Authority. The loans, Weis has argued, were in breach of the Subsidy Control Act.
The Competition Appeal Tribunal judge presiding over the case earlier this year had disagreed, ruling that the GMCA had acted in a “perfectly rational and not inherently defective” manner when it came to the loans.
“The 2024 Renaker loans went through a proper process and the terms and rates considered by persons with significant experience in development loans,” the judge said. “The tribunal has carefully scrutinised all the material and submissions and is satisfied that there was no subsidy in this case.”
In pursuing an appeal, Weis Group will be using the following grounds:
- The CAT failed to apply established principles of judicial review when assessing the respondent’s decision to grant financial assistance.
- The CAT erred in law by concluding that the respondent had lawful regard to the statutory guidance despite no evidence that the relevant decision-making body did so.
- The CAT misinterpreted and misapplied the EU Commission Reference Rate Communication.
- The CAT failed to take into account relevant considerations, including comparative commercial loan terms, risk concentration concerning the SPV’s beneficial owner, and representations by the borrower to the Local Authority that the schemes are not commercially viable and thereby obtained exemption from affordable housing requirements.
A Weis Group spokesperson said: “We are grateful for this decision and look forward to putting our case in court.”
They added later: “We are particularly pleased that the use of conflicting viability reports will be examined.
“Moreover, it is of enormous importance in the context of the current government’s agenda of further devolution of powers and creation of the National Housing Bank,” the spokesperson continued.
“With some £16bn of public funds up for grabs it is imperative that there are proper processes in place which guarantee the correct and proper administration of public money. government must ensure that there is no distribution of funding to a small number of parties that creates an uncompetitive environment.”
Regarding the appeal, a spokesperson for the GMCA said: “This case was brought to the Competition Appeal Tribunal and we won on every count.
“An experienced tribunal saw all the documents and stood behind our processes. In fact, the tribunal chair praised our approach, which helped deliver 11,000 new homes across Greater Manchester, regenerating brownfield sites at no cost to the taxpayer, and without losing a single penny. “
“We have full confidence in our processes and the expert team behind them, and we are ready to defend our case in court.”
For gods sake Weis Group, give it a rest! Crack on with your own interests and stop sticking your nose into places it doesn’t belong!
By IMHO
This is an odd business strategy, they’ve appealed against MCC and lost and against GMCA and lost twice… Anyone have a copy of how to make friends and influence people to send over to Weis HQ?
By Anonymous
Regardless of the outcome, this case is to be welcomed for the reasons Weis has set out – providing further scrutiny of the process. Even if the appeal fails, I’m sure there will be lessons learned and this will only improve transparency.
By Anonymous
By the time this appeal comes around, the loan and interest will have been settled. It’ll be difficult to argue that a risk premium should have been applied when the proof is in the pudding.
By Anonymous
re annonymous at 10.29.. perhaps it’s friends and influence that they are concerned about and imho at 10.26 why wouldn’t their nose belong there? ..just asking, just wondering..
By i wonder
If Reneker just built some social housing schemes for the Councilor it would help ! They have made £600million ! Look at the Stirling prize winner in London . Developer built 70 flats for St Saviours charity as a planning gain . Easy
By Anonymous
If the courts can find Legal errors adequate for forming an appeal 3 times i.e. procedural mistakes, errors in the way the case was handled, and generally serious failures its very odd – or Weis Group just might be right.
By Steve5839
By my reckoning, this has virtually zero support in the development community locally or nationally. There is no story here, no support and this is just a Weis issue, not someone representing the development community. Find me one organisation who are delivering homes on GM that comes out in support of their stance and I will withdraw this comment.
By Anonymous
Not this again? For goodness sake Weis give it a rest!
By Anonymous
Transparency, and a level playing field is all that’s needed here, the question was it?
By Fair play.
Weis Group are not doing themselves any good, they need to stop waisting everyone’s time and money and just get on with their developments.
By Anonymous
If Renaker’s schemes weren’t commercially viable enough to meet planning policy on affordable homes, why were they given public money? Let them go to conventional lenders at much higher interest rates and less preferential loan terms to fund their mega projects. Public money at cheap rates should be reserved for companies that want to serve the city of Manchester and it’s people and make a profit too, not just line their own pockets and tax avoid leaving the rest behind.
By Anonymous