Evergreen Fund backs the Soapworks

A NORTH West property fund backed with cash from Europe and local authority pension funds is supporting the second phase of the £70m Soapworks scheme in Salford.

The 400,000 sq ft office redevelopment of the former Colgate-Palmolive factory is being handled by asset manager The Carlyle Group and joint venture partners Nikal and Abstract Securities.

Earlier this month they signed up Vital Services Group to the first phase – the 20,000 sq ft Boilerhouse.

Now the North West Evergreen Fund has provided a £6m loan to support the 210,000 sq ft second phase which it is claimed will deliver 1,350 jobs and “act as a catalyst” for further phases of the Soapworks development which “will create up to 2,500 jobs”.

The cash will allow construction to start in the new year on three blocks that should be finished by the end of 2013.

A consortium led by the 10 Greater Manchester councils manages the fund. When it was established two years ago it consisted of £20m from Europe, £10m from the North West Development Agency and £30m in match funding. Some £50m was expected to come from the Greater Manchester Pension Fund.

Lord Peter Smith, chair of the Association of Greater Manchester Authorities, said: “The Evergreen Fund is an innovative use of public funding to support private enterprise in these challenging times. We will be investing in priority schemes which will deliver real jobs and growth, as well as financial returns, unlocking opportunities and stimulating the success of the region.”