Chinese developer Beijing Construction and Engineering Group (BCEG) has been appointed as main contractor for a £700m regeneration project in Manchester.

The news comes as the Prime Minister David Cameron and Chinese President Xi Jinping embark upon a tour of Manchester as part of the China State Visit.

BCEG are to deliver the 24-acre Middlewood Lock development at the western gateway to Manchester's Central Business District for Scarborough Group International (SGI).

The residential and commercial neighbourhood project will comprise of around 2,000 homes and up to 750,000 sq ft of commercial mixed-use development space including offices, hotel, shops, delis, restaurants, a convenience store and gym.

It will be located on three large basins of the Manchester Bolton and Bury Canal in Salford.


The first phase of the development involves building 550 homes along with 29,000 sq ft of commercial space and new public realm.

A planning application for phase one was submitted earlier this month, with a decision expected in before the end of the year.

Works are expected to begin on site in the first quarter of 2016.

Lee Savage, Development Director of Scarborough, said: "Middlewood Locks is a unique site with the potential to deliver thousands of new homes, jobs and a first-class business destination. The selection of BCEGI means that we are on track to deliver the first phases of the development and we are confident that this scheme will be transformational for Salford and its wider regeneration activities."

Mr Xing Yan, BCEG International MD, said: "We are delighted to be selected as preferred contractor for Middlewood Locks and have very much enjoyed working alongside the Scarborough team. We are now looking forward to delivering the first phases of development of this significant and strategic regeneration project."

Speaking about Chinese investment in the 'Northern Powerhouse', PM David Cameron said: "We are committed to rebalancing our economy and building a Northern Powerhouse.

"China is a key trading partner for the UK and the partnerships being made today will see real investment going into the north.

"This is all part of this government’s plan to attract more investment and deliver economic growth to an area of huge potential."

(LM/MH)