Scottish developer Drum Property Group is poised to acquire the Gallery Gardens project in Manchester’s Castlefield district, a £94m development initially proposed by DeTrafford. The project, which includes 366 flats, entered administration in early 2023 without construction commencing.

Drum Property Group, based in Aberdeen, has emerged as the leading contender to take over the site after a competitive bidding process. The developer has submitted an application to Manchester City Council to amend certain conditions of the planning consent, which was granted in August 2021. These amendments aim to split the project into enabling and main works phases to prevent the planning permission from expiring.

A letter from Deloitte, submitted on behalf of Drum, highlights that the proposed changes will “facilitate the lawful implementation of the scheme, allowing the full economic benefits of the 366 homes in this location to be realised.”

Drum Manchester, a special purpose vehicle led by the developer’s managing director Graeme Bone, along with directors Stuart Oag and Adam Russell, was established in July to manage this project. Drum Property Group is known for its active role in property development across Scotland and has several projects in England, including a 391-flat build-to-rent scheme in Leeds.

The collapse of Gallery Gardens left millions owed to lenders and investors. Daiwa, one of the primary lenders, is owed £25.1m, while Maslow, another lender, is owed £11m. Additionally, unsecured creditors are owed £7.2m, primarily in intercompany debt. Over 80 flats were sold off-plan, with £2.1m in deposits paid by purchasers holding unilateral notices.

Drum Property Group’s involvement brings fresh hope for the regeneration of this part of Manchester, aligning with broader infrastructure development and urban regeneration efforts within the city.