The next stage of development at Middlewood Locks in Salford, England, is set to proceed after securing funding from the National Housing Bank.
The loan supports further construction at the £1bn ($1.3bn) mixed-use regeneration project, with the latest funding bringing the total amount loaned for the scheme to £84.2m.
Joint venture partners Metro Holdings and Scarborough Group International will use the package to accelerate the delivery of up to 909 additional new homes on land adjacent to Manchester City Centre.
The funding builds on an established partnership between the developers and Homes England, the parent agency of the National Housing Bank, which has previously provided financing for earlier phases. These prior loans have been fully repaid, according to the developers.
To date, the scheme has delivered more than 1,300 completed homes, creating a community of over 2,600 residents across 1,306 properties, alongside a range of retail, leisure and public amenities.
Construction enabled by the new funding will take place on a 10-acre site neighbouring Salford Central station and strengthen links between the Salford neighbourhood, Manchester’s St. John’s area and the Spinningfields business district.
Planned works include site preparation and design activities aimed at supporting the planning application for the ‘Gateway 2’ scheme, which proposes 909 new homes in ‘Brick Fields Yard’ and ‘Lockgate Wharf’, along with ground-floor commercial and amenity space.
Brick Fields Yard is expected to provide 659 apartments set around a private podium garden and contained within two buildings of 27 and 32 storeys.
Lockgate Wharf is described as offering 250 additional canalside homes beside a new public park and close to the Manchester, Bolton & Bury Canal and River Irwell lock.
Scarborough Group International managing director Paul Kelly said: “We are delighted to extend our long-standing and very successful collaboration with Homes England as one of the first pilot schemes since the launch of the National Housing Bank in March.
“This funding arrangement marks a significant milestone in realising the full potential for Middlewood Locks as an important driver in creating sustainable new communities and much-needed new homes.”
National Housing Bank Loans director Nigel Barclay said: “The initial three phases of Middlewood Locks have been highly effective in delivering essential new homes, revitalising previously unused land and strengthening the connection between Salford and Manchester city centre.
“Urban regeneration projects such as Middlewood Locks play a vital role in supporting new development in towns and cities, fostering communities where individuals are eager to live and engage socially. We continually seek collaboration with partners who share these goals and ambitions.”
The National Housing Bank, launched by the UK government, aims to increase housing delivery and urban regeneration across England by providing up to £16bn in finance and guarantees.
