Urban Splash gives up New Islington development sites

URBAN Splash has relinquished a number of its development sites in the New Islington area of Manchester.

The Manchester-based developer is still the preferred developer for the regeneration of a large chunk of Ancoats but its partners, the Homes and Communities Agency and the city council, want to move some plots forward with other developers.

Following talks a split of the landholdings has been agreed which will see Urban Splash continue with some, but hand others back to the Homes and Communities Agency.

Urban Splash is currently building a primary school at New Islington and is planning its next scheme, a residential development of 43 homes called House. One of its former plots on New Union Street is already being taken forward by Astley-based McCaul Developments.

David Chilton, the HCA’s director for Greater Manchester, said: “We’re still talking to them on how they’ll meet expectations on the development because it has stalled for some time. But we’ve got the school coming and progress on House and we’re talking to the council on how we might accelerate other schemes in the area.”

He added: “We’ve been in discussions with them about their ability to take forward development plots. We have agreed an approach where some work will be taken forward with Urban Splash and some won’t.”

TheBusinessdesk understands that Urban Splash has handed back eight sites, leaving it with four which must be developed within an agreed timescale. Mr Chilton could not confirm this figure but said it might not give a fair picture of the development area affected because some plots are very small and others are landlocked and must be developed with neighbouring sites.

A number of Urban Splash’s plans for the site stalled after the company became mired in high levels of debt which reached £242m last year. It was also hamstrung by the depressed property market.

In July it sold a large part of its residential portfolio, including 654 apartments and the Chips scheme in New Islington, to social landlord Places for People in a £77m deal. It also undertook a corporate restructure that has allowed it to continue under a number of new debt free corporate entities.

A spokesperson for Urban Splash said: “To date the partners have delivered hundreds of homes, workspaces, a marina, a health centre and more recently a primary school. Urban Splash looks forward to announcing plans of its next development there within the coming weeks; one which will see more family homes created to complement the mix of dwellings that make up New Islington so far.

“Urban Splash has and will continue to have responsibility for the delivery of the majority of the remaining sites at New Islington. It has always been intention that developers who understood the quality, aspirations and vision of New Islington were given the opportunity to develop some of the plots. Over the course of the project so far, the partners have worked with Great Places Housing Group, NHS Lift, The Manchester Grammar School, the Free Schools Network and in partnership with other developers like the McCaul’s Point scheme which is now on site.

“All partners are keen to continue to add to the development diversity and we have recently revised that legal agreement to simplify the above arrangements to allow earlier delivery given the improving market conditions. The partners will in due course make announcements how other developers can get involved in New Islington. Developments like these complement the work we have already delivered and ensure that New Islington will become a new district for Manchester, rich in homes of mixed tenure, workspaces, public spaces and other amenities.” 

* Councillors call for Sheffield City Council to cut ties with Urban Splash’s Park Hill scheme.