FEC accelerates Northern Gateway land acquisition
Manchester City Council is set to sign off a loan to Far East Consortium to progress the first projects at the £1bn Northern Gateway within the next 12 months.
FEC, the Northern Gateway development partner, is set to secure a loan from the council’s £25m pot for the Northern Gateway; this will allow it to speed up land assembly to deliver the opening phase of projects within the masterplan area, which stretches from Victoria Station to Collyhurst.
Two sites have already been acquired, both in the Red Bank area of the masterplan, near Victoria Station: the former Angelgate plot on Dantzic Street, and another neighbouring plot. The Angelgate plot was purchased last year following the collapse of previous developer Pinnacle Angelgate.
Heads of terms have been reached for a third, larger plot, although a final deal for this site is yet to be agreed.
It is understood the first projects to be brought forward are at Collyhurst, where FEC and the council will develop affordable homes, and within the Red Bank area.
Red Bank, the nearest plot in the masterplan to Victoria Station, has the potential to house tall buildings, while there is also an ambition to bring forward a “brewery quarter”, featuring existing businesses within the site’s railway arches. The existing Red Bank viaduct will also be re-used under FEC’s plans for the area.
The loan for land acquisition will be repaid by FEC at the point of development and can be reinvested by the council into other projects. FEC and the council have also put forward a bid for Housing Infrastructure Fund money to support development.
According to the council, the loan will allow FEC to submit a planning application and start on site with its first development in 2019/20. The total value of the loan remains undisclosed; Manchester City Council’s executive is set to sign this off at a meeting on 26 June.
Earlier this month, FEC put forward proposals for an 80-apartment scheme in New Cross, designed by architect HawkinsBrown; this sits within the council’s New Cross Neighbourhood Development Framework.
I’ll believe it when I see it, they’ve been talking about this for years
By Floyd
So Manchester City Council are effectively loaning money to the Chinese government. Interesting. They must be skint.
By Feck
FEC using Mancunians pot of money to secure a loan to build property which is affordable – Please someone give me a definitive definition of what is affordable – I am sure it is not first time buyers !!!!!
By Alan
Manchester city council are a joke
By Sarah
MCC know how to get things done, other councils should take note.
By Dan
I have to say, I fully agree with you on this one Sarah. Feck/Alan agree with you as well. Dan you sound like a cheerleader…are you on the council/developer payroll?
I can see the council trying to cover up the actual financials when they realise they might just have had their pants pulled down by FEC. Even though Manchester may benefit from the development, I have a feeling that FEC will benefit more.
By Not Sarah
FEC and the City Council pulled a smart one when planning was withdrawn on the Angelgate site. It left a clear run for FEC to buy it cheaply without planning permission. They bought it for £5.2m . Thats only £2.6m per acre for 2 acres of City Centre real estate. Therefore depriving Angelgate investors of getting hardly any of their money back on the failed Pinnacle Angelgate scheme. City Council and FEC have alot to answer for. Something going on behind the scenes here that the public deserve to know.
By George Roberts