Stockport Executive has approved the use of council borrowing powers to fund the £25m phase 2 of Muse’s Stockport Exchange project.
The council bought the site, formerly known as Grand Central, in 2011, to progress an office-led project.
Phase 2 includes a 50,000 Grade-A office block, a 120-bedroom hotel and a pedestrianised public space.
A council-backed loan will now be covered by the income generated by the scheme. A planning application is now being put together by Muse, with a view to starting on site next year.
The council loan will come through the prudential borrowing system, which provides preferential rates for local authorities to invest in fixed assets.
It will forward fund the office and hotel developments as part of the project, and according to Stockport’s modelling it will be self-financing.
Councillor Iain Roberts said the move showed the local authority’s “staunch commitment to regeneration” by “putting our money where our mouth is.”
“The redevelopment of Stockport Exchange is crucial to the success of the town centre and the borough – by using our preferential rates of borrowing we can kick-start Phase 2 and attract further investment at a time when the private sector can’t.”
chris.berkin@estatesgazette.com
