The Greater Manchester Housing Fund is supporting the conversion of a Grade II listed church and the development of 14 new build family homes in Hyde.
Manchester based developer Nook and Key approached the Fund after seeing a banner on a site in Manchester city centre.
Director Ross Gardner said: “We actually had our finances lined up with about seven offers from different institutions and were all set to go but after seeing the banner for the GM Fund we arranged to meet the team and we are really happy we did.”
The Fund agreed a £2.5m loan with an additional £1.1m from the Homes and Communities Agency.
The monies represent 85% of the development costs of the scheme and Ross added: “The fees are comparable to institutional lending but more crucially the amount allows us to free up our own equity and look at other sites and more schemes.
“It is a partnership and makes us as a small business a more attractive and safer proposition. It opens up avenues for other private investors and allows us to grow faster.”
The Church, St Stephens in Floweryfields, will be converted into 16 large one and two bedroom apartments in a scheme designed by Millson Asociates. All the apartments and the three and four bedroom houses will be for sale.
Full planning permission and listed buildings consent was granted by Tameside Council and work is due to start this month. The new build and the conversion will both start at the same time.
The company’s previous development is Heathfields in Salford, which is now sold out.
Director Mike Hampson said: “We have discovered that there is a lot of added value working with the fund rather than with a bank. We have received a huge level of support, not just financial but with the strategic positioning of the company and we were introduced to Manchester Place that may lead to more opportunities going forward.
“The Fund Team came out to see what we do. The quality we want to achieve and the mix of properties we will create in Hyde. Unlike a bank the Fund has the same goal as us – we want to build more houses. All our ambitions aligned.”
The 10-year GM Housing Fund has £300m to loan to viable housing schemes across combined authority area and the team is keen to hear from small and medium sized developers to see how construction can be accelerated.
More than £100m of loan funding has already been agreed but Fund manager Andrew Macintosh said: “We would encourage developers of all sizes to come and speak to us. Nook and Key are a perfect example of how working together we can get a wide range of housing get on-site and building more quickly.”
Two other loans were also agreed in the latest round: £10m to Waterside Places for 89 apartments and 12 townhouses at Islington Wharf and £6.9m to Azar Estates to build 24 houses on a site in Northenden Road, Sale.
You can find more details on this website under Funding or ring and speak to Martin Ewell on 07773 572703