The proposed partnership would require GMPF to develop around 250 new homes for sale and high quality market rent. The new homes would be built on four council-owned sites, with a fifth development that would be sited on land owned by the Homes and Communities Agency.
The council will invest its land into the joint venture at "fair market value" and GMPF will take an equity share of around £25 million in the housing delivery model. The Council would then receive a capital payment on the sale of houses and an annual revenue return.
Greater Manchester has seen a 76% reduction in the number of new completions from the year of 2007-2008 to 2010-2011, the Council said. It also predicts that the number of completions are unlikely to rise, given the number of sites under construction at present.
Manchester City Council's chief executive and city solicitor have recommended that the executive draw up a memorandum of understanding with GMPF, which would set out the key principles of the joint venture.
The homes will be developed by the property arm of GMPF, the Greater Manchester Property Venture Fund, which undertakes direct development on behalf of the pension fund.
Commercial property advisor GVA has been appointed to advise GMPF.
