Andy Burnham’s office could be sued over £745m loan to major Manchester developer | Local news | News | Stockport Nub News

By Ethan Davies

Andy Burnham’s office could be sued over loans totaling £745m to one of Manchester’s biggest developers.

A major city landowner, the Weis Group, is taking the Greater Manchester Combined Authority (GMCA) to the Competition Appeal Tribunal. She believes loans to developer giant Renaker have ‘distorted’ Manchester’s property market, reports North-West place.

“While we cannot comment on the case itself, it appears from publicly available information that following the proposed loans recently approved by GMCA, they will bring the total total loans to Renaker by GMCA and its affiliates to £745m at rates of state-subsidized loan, although full disclosure of the terms of the most recent loans remains unresolved,” a Weis spokesperson told the property news title.

Renaker is the company behind the tallest building in the city – Deansgate Square South Tower – and other nearby skyscrapers. Trinity Islands – two towers of 55 and 60 storeys at the junction of Trinity Way and Regent Road – are also currently being developed.

GMCA currently lends millions to developers through its Housing Investment Fund. It was created in 2015 using government cash.

Since then, around £700m has been given to developers through the fund, with GMCA figures previously saying any interest earned on loans is used to pay for other housing initiatives such as upgrading and building on brownfield land.

It remains unclear which GMCA funding schemes include Weis Group in their application, but these could be revealed when the case is formally submitted to the Competition Appeal Tribunal. The GMCA said it was “aware” of the action.

“We are aware of an application made to the Competition Appeal Tribunal in relation to the Greater Manchester Housing Investment Loan Fund,” a spokesperson told Local Democracy Reporting Service.

“GMCA has offered these investment loans to a range of developers for a number of years and we are confident in our processes.”

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