Greater Manchester Pension Fund, or GMPF, which controls assets of £21billion for over 350,000 workers*, is no stranger to controversy. There has been an ongoing campaign for the Fund to divest from fossil fuel and fracking companies like Shell and BP (see here), while, last year, it evicted homeless people from its empty Pizza Express building in Manchester (see here).
Last week, the GMPF announced that it is acquiring the Soapworks in Ordsall from the Carlyle Group for £60milion. Together with 230,000sq ft of offices there is also an additional 150,000sq ft of land by the River Irwell on which the Fund is reported to be 'exploring the creation of 240 new homes and a 150-room hotel'.
Ordsall, currently the centre of massive investment in unaffordable luxury apartments, is crying out for affordable housing, yet it appears that this latest investment, funded by public and third sector workers' pensions, will have no affordable housing.
The Salford Star contacted both the Pension Fund itself, and its chair, Tameside councillor, Kieran Quinn, to confirm whether or not the scheme will contain affordable housing, and neither responded.
Yet Quinn was gushing in his praise of the development in press releases..."As the largest local government pension fund in the country, the Greater Manchester Pension Fund has a proud history of investing in both Greater Manchester and the North West through projects such as Matrix Homes and One St Peter's" he said
"...I look forward to seeing this iconic development come to life" he added "This innovative and prestigious scheme will attract businesses and support economic growth in Salford and the wider Greater Manchester region."
At a Greater Manchester level, both GM Mayor Andy Burnham and Salford City Mayor, Paul Dennett, have slated the huge expansion of unaffordable housing and underlined the need for affordable housing.
Speaking in Salford last May, Burnham said he was "signalling a change in Greater Manchester housing policy", moving to solve the housing crisis by "building more council houses, more social housing...
"In recent times there has been more focus on flagship, on high end developments and on commuter homes" he added "...but now the focus does need to change to ensuring the right homes at the right level of affordability in all communities..."
And speaking of the £300million Greater Manchester Housing Investment Fund, which has seen public funds subsidise luxury developments** by the likes of Fred Done and Peel Holdings (see here), Dennett was equally scathing...
"The beneficiaries of some of what we've been doing in Greater Manchester haven't always been the people of Greater Manchester and I think we have to be honest about that" he said "But moving forward, when we recycle this £300million we can actually use it to meet some of our aspirations around social housing, council housing and truly affordable housing..." (see here)
While the GM Pension Fund is separate from the GM Housing Fund, its advisory panel is stuffed with councillors from around Greater Manchester, including Michelle Barnes from Salford.
On the Soapworks deal, Dennett was quoted as saying; "The re-development of this former factory to a modern working environment compliments the sustained growth of MediaCityUK and the Quays and has been at the forefront of transforming Ordsall riverside."
The big question is, 'Who is it being transformed for?'
* In Salford, Greater Manchester Pension Fund invests on behalf of virtually all public sector and third sector workers, including those from Salford City Council, Salford University, Salix Homes, City West, Salford College and even the Working Class Movement Library.
*The Greater Manchester Pension Fund also has a sideline called the Greater Manchester Property Venture Fund, which, last year, invested, via loans, £4million in the New Islington Urban Splash development; and £8million in Rowlinson's controversial Pomona development, which also received £10.3million from the GM Housing Investment Fund.
Update: 21st September: Councillor Quinn has now responded: "We've not had any time to evaluate any proposals post purchase. At present we are taking an open mind to development opportunities at the site whilst recognising the clear potential of the location for multi-purpose development incorporating existing planning permissions.
"As you would expect we will look to work with Salford Council and other stakeholders to achieve a development that best fits the site whilst maximising the Pension Fund’s financial returns as well as the benefits it could bring to local housing solutions."
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