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.”
