Public sector investor the Greater Manchester Pension Fund is to form a joint venture with Manchester city council in a bid to deliver housing.
Under the arrangement, GMPF will develop around 250 homes on four council-owned sites and a fifth, owned by the Homes and Communities Agency as part of a pilot scheme, which could be rolled out across the region.
The council will invest its land into the jv at “fair market value” and GMPF will take an equity share – thought to be around £25m – in the housing delivery model. The council will receive a capital payment on the sale of houses and an annual revenue return.
The council’s executive recently gave the go-ahead for the local authority to draw up a memorandum of understanding with GMPF, setting out the principles of the jv.
The homes will be developed by the property arm of the GMPF, the Greater Manchester Property Venture Fund. GMPVF, which undertakes direct development on behalf of the pension fund, is increasingly active in the North West market.
It is partnering Argent on the development of the 280,000 sq ft One St Peter’s Square office scheme in central Manchester and is also working up plans for commercial development on recently acquired sites in Liverpool, Warrington and Manchester.
GMPF is advised by GVA.
daniel.cunningham@estatesgazette.com
