Regeneration in Manchester is in line for a major boost after plans were unveiled to build thousands of new homes in the region.
The proposal, unveiled by urban regeneration specialist Sigma Capital Group PLC, could lead to 1,450 homes being built over two years in Salford and Trafford in a Â£200m first phase of development, with plans to build thousands more in a Â£500m second phase.
The positive impact on regeneration in the region was recognised by prime minister, David Cameron.
â€œAs part of our plan to help Britain succeed, we are determined to build a rebalanced economy across the country.
â€œAs we compete in a tough global race, Sigma’s joint venture with Gatehouse is brilliant news for the North West and for Britain, showing that we are open for business,” he said.
Merseyside to Benefit Too
Sigma’s planned scheme also encompasses the building of 450 homes in Merseyside in the first phase, with a second phase of 4,600 homes for both Manchester and Merseyside.
The Edinburgh-based company works closely with local authorities to deliver urban regeneration objectives and want all 6,600 to be available for rent.
The project is part of a joint venture between Sigma and London-based investment bank Gatehouse Bank, who will contribute funds to the scheme, and seek finance from banks to fund the first phase.
Gatehouse also can choose to commit to the equity option of the Â£500m second phase.
Sigma’s chief executive, Graham Barnet said: “Underpinning this new venture are our local authority partnerships and I am extremely pleased that this agreement creates the conditions for us to help efficiently deliver their regeneration objectives, with high quality new homes.
Once bank funding is in place, we look forward to delivering the initial tranche of around 2,000 new homes over the next two years.”