Construnction firm Renaker has annonuced a multi-million pound deal with the Homes and Communities Agency (HCA) to fund its One Greengate tower block and 282 homes in Manchester.
In total the funding covers 779 homes on two sites in Salford and Manchester.
£35.1m from the HCA goes towards 497 flats for private rent being built in Salford’s Greengate district in two towers 31-storeys and 19-storeys high.
The HCA has also earmarked £20.2 million for 282 homes being built at Renaker’s Cambridge Street development in Manchester.
Each site will include a mix of 1, 2 and 3-bedroom properties.
The 88m-high One Greengate development was designed by Salford architects OMI.
Housing Minister Brandon Lewis announced the deal today at the British Property Federation annual conference.
The money comes through the government’s £1bn Build to Rent scheme.
The Salford plans were originally passed in November 2013 for a vacant plot on New Bridge Street between Trinity Way and the Manchester Victoria railway line.
Renaker said completion was expected in September 2016.
Renaker Director Daren Whitaker said the firm was delighted to gain the funding for two “important city centre schemes” and said each would deliver “highly aspirational places to reside”.
Chief Executive of the Homes and Communities Agency Andy Rose said: “This is a major investment in the private rented sector [which] demonstrates how the HCA is combining financial and local expertise to increase the private rented choice in areas where there is a high demand for homes.”