A legal opinion alleges that Manchester City Council acted unlawfully twice when acquiring the leasehold for a 10.5-acre site in Ancoats, earmarked for the government's new 'No 10 North' hub. The site, formerly the Central Retail Park, was purchased for £35 million in late 2017.
Christopher Knight KC, representing property mogul Aubrey Weis, claims the Greater Manchester Combined Authority (GMCA), formerly overseen by Andy Burnham, failed to obtain a formal valuation report before making an offer to the previous owner, TH Real Estate. Knight stated this represented "the most expensive land acquisition ever made by the council for an inner-city site."
A second alleged breach occurred when members of Manchester City Council were not informed of an alternative offer for the site's freehold, owned by the council, from property consultant Metis. Metis was acting on behalf of developer Cole Waterhouse. A report to councillors proposing the leasehold acquisition in September 2017 did not mention this offer. Knight argued this failure was unlawful as it prevented the council from considering all relevant factors in its fiduciary duty.
According to Knight, a report from property consultant Jonathan Bernstein, son of then-Manchester City Council chief executive Sir Howard Bernstein, valued the retail park at £33 million for commercial use and £25 million to £30 million for residential use. However, the land's value reportedly fell to £27 million by 2022 after a proposed development was shelved, leading to accusations of a "massive overpayment."
Knight emphasized that when public money is expended, the council must act in accordance with its fiduciary duty, especially for a property interest expected to cost over £42 million. The formal deadline to challenge the property deal, which was six years, elapsed in 2023.
The controversy surrounding the land acquisition threatens to impact plans for 'No 10 North,' which aims to decentralize power from Westminster. Burnham has described the initiative as creating "a more balanced country, and that big things can be done from here."
Morgan Weis, the owner of a property empire, is currently involved in a separate legal challenge against the GMCA regarding preferential loan rates provided to another developer, Renaker. The Court of Appeal recently ruled against his claim concerning these loans, though he is preparing a further challenge.
A spokesperson for Manchester City Council stated that they disagree with the opinion presented about the acquisition. They asserted that the decision to buy the site has not been challenged, and the price reflects its value as a large retail site and a key city regeneration opportunity. The council added that the agreed price was based on recovery through the site's long-term development. The GMCA and Downing Street were contacted for comment.