Manchester's Housing Investment Fund looks towards another milestone as the search begins to find a property management company for the development.

The Housing Investment Fund (HIF), a joint partnership with Manchester City Council and the Greater Manchester Pension Fund (GMPF), will invest £24m to finance five, new home developments, that will see approximately 240 new high standard and high specification homes across the city – the first initiative of its kind in the country.

The HIF will choose a contractor that will design and build the homes, but without the risk associated with a normal development, and the partnership will generate a revenue return from their investment through rents and a capital return through house sales.

Property consultancy, GVA, advises the Greater Manchester Pension Fund in potential development opportunities.

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'Expressions of Interest' have been submitted through the Homes and Communities Agency (HCA) from interested contractors, and Great Places/Plumlife have been appointed to provide sales and marketing services for the HIF.

The successful property management company will lease and manage approximately 140 of the new homes earmarked for market rent – and interested parties will have until 10 May 2013 to express their interest.

The remaining 100 homes will be offered for sale. It is hoped that buyers could access lower cost housing through an equity share product, providing a genuine route on the property ladder.

The scheme takes advantage of unused land, owned by the city council, while a partner – in this case the GMPF – invests the finance required to build the homes.

If successful, the housing investment model could set a precedent for much bigger projects with other major investors – securing a sustainable future for home building in Manchester and Greater Manchester.

Cllr Jim Battle, Deputy Leader of Manchester City Council, said: "This is an important step for housing investment and this unique scheme, which has been developed in Manchester, is a trailblazer in creating partnerships between the Homes and Communities Agency and the Greater Manchester Pension Fund.

"We are hoping that this scheme will prove a sound commercial investment for the Greater Manchester Pension Fund, while securing investment in homes in to the future. We are also encouraged by enquiries across the country who want to emulate Manchester’s example."

(CD)