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Renaker has built Manchester’s tallest towers(Image: Getty Images)<\/p>\nThe Greater Manchester Combined Authority says there was ‘independent scrutiny’ over the loans handed to the major developer<\/p>\n
18:52, 29 May 2025Updated 18:54, 29 May 2025<\/p>\n
Renaker has built Manchester’s tallest towers(Image: Getty Images)<\/p>\n
Andy Burnham\u2019s office has rejected claims over huge loans it \u2018rubberstamped\u2019 for a developer with which it has \u2018a cosy relationship\u2019.<\/p>\n
The Greater Manchester Combined Authority (GMCA) is in court over two loans to special-purpose vehicle companies controlled by Daren Whitaker, the boss of Renaker. The firm built notable city centre skyscrapers like Deansgate<\/a> Square.<\/p>\n Renaker was loaned \u00a3615m by the GMCA\u2019s housing investment loans fund which was established in 2015 to help developers build 10,000 homes across Greater Manchester.<\/p>\n No loans have been defaulted on and the fund is closed for new applications.<\/p>\n Now a court case, brought by major city centre landowner Aubrey Weis, is challenging the two organisations’ relationship, arguing it breaches the Subsidy Control Act.<\/p>\n The case has wound up in court at the Competition Appeals Tribunal in London.<\/p>\n Both the GMCA and Mr Weis\u2019 legal teams agree no due diligence was carried into Mr Whitaker and his financial position over two loans worth \u00a3120m for Renaker\u2019s Trinity Islands and Contour skyscrapers, but the GMCA insists it has \u2018independent scrutiny\u2019 of every loan.<\/p>\n Joseph Barrett KC, appearing for Mr Weis, said: \u201cIt can’t possibly be right to be conducting a lawful assessment of creditworthiness without looking at all into the creditworthiness of that individual if he is what you’re relying upon. That just can’t be right.\u201d<\/p>\n But Aidan Robertson KC, appearing for the GMCA, said it was \u2018reasonable\u2019 to take the \u2018proposition\u2019.<\/p>\n He told chair Hodge Malek KC: “Whilst there is no parent company or personal guarantee from Mr Whitaker, we do have cross-collateralisation to a certain extent, that’s between the two borrowers, you’ve got additional security on properties falling outside the two projects.<\/p>\n \u201cIt’s a reasonable view to take that this is a commercial proposition. That is the approach that the authority’s taken and has withstood external scrutiny from the gateway panel and the scrutiny committee from people who are highly experienced in this industry.”<\/p>\n