The long-running legal dispute over £140 million in loans for two major Manchester skyscraper projects is set to return to the Court of Appeal this week, just days before Mayor Andy Burnham contests the Makerfield by-election.
Background of the Case
The Greater Manchester Combined Authority (GMCA), chaired by Burnham, faces landowner Aubrey Weis in London on June 9 and 10. The case centres on loans provided to developer Renaker, founded by Daren Whitaker, for the Trinity Islands scheme near Trinity Way on the River Irwell and the New Jackson development next to Deansgate Square.
The loans, initially worth £140 million, were adjusted to £120 million and came from the Greater Manchester Housing Investment Loans Fund (GMHILF) in 2024. They form part of over £1 billion lent by the fund since its creation in 2015.
Previous Court Ruling
At a Competition Appeal Tribunal (CAT) hearing in May 2025, Joseph Barrett KC, representing Weis, argued that the loan pricing was agreed "by two gentlemen sitting in a room" with "no lawful or proper process." He claimed officers had become "objectively too relaxed" in their dealings with Whitaker, at the cost of transparency and proper decision-making involving £120 million of public money.
The GMCA denied the allegations, stating: "We refute any suggestion that the loans from the Housing Investment Loans Fund have been given at less than market rate or on preferential terms."
In July 2025, the tribunal ruled in favour of the GMCA. Chair Hodge Malek KC concluded: "The Tribunal is satisfied that there was no subsidy in this case. The 2024 Renaker Loans went through a proper process and the terms and rates considered by persons with significant experience in development loans."
Appeal Grounds
Despite the CAT ruling, the Weis Group was granted permission to appeal in October 2025 on five separate grounds. Court documents state these grounds "have a real as opposed to fanciful prospect of success and raise novel issues of importance to the subsidies regime."
The GMCA maintains it followed correct processes. A spokesperson said: "This case was brought to the Competition Appeal Tribunal and we won on every count. An experienced Tribunal saw all the documents and stood behind our processes. In fact, the Tribunal Chair praised our approach, which helped deliver 11,000 new homes across Greater Manchester, regenerating brownfield sites at no cost to the taxpayer and without losing a single penny."
The Housing Investment Loans Fund
Established in 2015, the GMHILF aims to support new housing developments across Greater Manchester. A January 2025 GMCA report stated the fund "aims to address the region's housing shortage by providing funding to private-sector developers, with the aim of increasing and accelerating the delivery of homes." The report noted the fund had directly and indirectly helped build more than 600 affordable homes, including social rent and shared ownership properties.
Other GMCA schemes, such as the Good Growth Fund, are also financing housing projects. Recently, it approved a £50 million loan for Manchester's tallest skyscraper at 76 stories, part of the Viadux 2 development by Salboy, which includes a 23-storey building with 133 social rent homes.
