The GMCA said it will ‘robustly defend’ its administration of the fund
It’s ‘expected’ a £1b property developer fund run by Andy Burnham’s office will be ‘extended’ — despite an ongoing court case against it.
Chiefs from the Greater Manchester Combined Authority (GMCA) have revealed talks are ongoing with the government over extending the GM Housing Investment Fund (GMHIF), which was due to close in April after 10 years. However, a major city centre landowner launched legal action against the GMCA over the fund last year.
Aubrey Weis, owner of Weis Group, is suing over multi-million-pound ‘loans’ given to two subsidiary companies of Renaker, a giant in the property industry responsible for bringing the Deansgate Square project to life.
According to the case’s Notice of Appeal, Mr Weis claims the £70.8m loan to Trinity Developments (Manchester) Limited and £69.2m loan to New Jackson (Contour) Investments Limited were granted at a rate of interest below ‘commercial terms’, which has ‘distorted the operation of the market for property investment’.
That, he argues, led to ‘Trinity and Jackson to undertake projects’ at cheaper-than-usual-prices, according to the case’s Notice of Appeal, which the claimant says is a breach of the Subsidy Control Act 2022. There is no suggestion Renaker has done anything wrong in securing the loans.
Andy Burnham has defended the operation of the fund, telling a GMCA meeting in October 2024: “The reason why [it was created] is not because loans are not being done at commercial rates; it’s done very rigorously and properly.
“There has been not one default. They have always been repaid.”
A GMCA spokesperson previously added: “The GMCA remains confident in our ability to robustly defend this claim, which we believe is premature. We will present our arguments to the tribunal, in accordance with the proper legal process.”
Now, a senior official within the GMCA has revealed the fund – which has loaned out £1b to developers from an initial £300m as money has been ‘recycled’, creating 10,000 new homes and 8,000 jobs – is set to be extended.
Speaking at the MIPIM property conference in Cannes, France, on Tuesday (March 11), the GMCA’s director of place, Andrew McIntosh, said the fund’s 10-year lifespan is due to expire next month — but talks are ongoing to grow it.
He explained: “We have been in discussion with the government about extending it. We are very much expecting to sign some extension for the housing fund.
“The ambition is to create additional flexibility and grow the size of the fund. All subject to discussion with the government as we move forward.
“There’s a very clear ambition in a Greater Manchester context to continue to deploy these funding schemes recognising that construction prices have gone where they’ve gone and there’s more of a viability gap.”
The government department which established the fund, the Ministry of Housing, Communities, and Local Government, declined to comment if it will extend the fund. However, it’s understood it will listen to the GMCA’s request and make a decision in due course.