UK's Renaker Reaches £114m Agreement with Manchester City Council

en.Wedoany.com Reported - UK developer Renaker has reached a £114m section 106 agreement with Manchester City Council, allowing its nearly 2,400-home Great Jackson Street scheme, comprising five towers, to proceed.

The Great Jackson Street scheme, designed by SimpsonHaugh Architects, was approved more than two years ago but has since been in negotiations with Manchester City Council over the required affordable housing contribution, with viability concerns prolonging the talks.

The project was originally planned across two plots and was approved without any on-site affordable housing. The council and the developer have now agreed capped alternative payments: £33m for the 71-storey Lighthouse tower and £81m for the other plot, which contains four towers.

The larger plot, named The Green, consists of two 47-storey towers and two 51-storey towers. Together, the two plots form one of the largest high-rise residential developments ever undertaken in Manchester.

The payment does not require upfront payment. The council has said that requiring full payment would make the project unviable. Under the agreement, each phase of the development will undergo a viability assessment when 75% of the homes are completed to determine the expected profit margin. If the assessment exceeds the permitted developer profit, the council is entitled to 50% of the surplus, with payments capped at £114m across the entire project.

Under the section 106 requirements, any recovered funds must be used for affordable housing within Manchester's boundaries, with a separate sum allocated to fund environmental improvements in the city.

The development team includes Deloitte, Curtins, WSP, GIA, Godwins, TPM Landscape, Stephen Levrant Heritage Architecture, Element Sustainability, FutureServ and Chris Burnett Associates.