New East Manchester taken over by council

Manchester City Council is to take over the ownership of regeneration company New East Manchester (NEM).

New East Manchester will become a wholly-owned subsidiary of the council after the Northwest Regional Development Agency (NWDA) and the Homes and Communities Agency (HCA) officially withdrew as shareholders.

NEM chief executive Eddie Smith will remain in his post, although there may be changes to the board of directors under the new arrangement. It has not been decided if the number of staff working on NEM projects will be changed. Most NEM staff are employed by the city council and seconded.

Simon Bate, chairman of New East Manchester said: “Following New East Manchester’s (NEM) board meeting yesterday, it has been agreed in principle that NEM will become a wholly owned subsidiary of Manchester City Council, who remain firmly committed to the continued regeneration of East Manchester for the long term.

“The company has successfully laid strong foundations over the past decade, and the future regeneration of East Manchester will build upon this, working closely with the City Council and other public bodies, local communities and the private sector to encourage development and unlock investment.”

A spokeswoman for NEM there should be ‘no dramatic changes’ to the way NEM operates.

More details to follow.