Infrastructure management group, AWG has entered into a 50/50 joint venture with Capital & Regional (C&R) for £55m in cash in respect of the Great Northern leisure and commercial development in the centre of Manchester.

C&R has invested £5m into the joint venture and will also manage the £72.5m property. Senior debt has been provided by the Bank of Scotland.

AWG will retain a £17.5m stake in the project, in addition to a share of future profits.

Great Northern is a Grade II listed Victorian warehouse on an island block of about 12 acres, bounded by Peters Street, Deansgate and Great Bridgewater Street.

The partly let scheme provides a mix of pubs, leisure and retail accommodation and offices, along with a new cinema building and an open public square.

C&R chief executive, Martin Barber, said: "We are very pleased that AWG has chosen us as their partner. We believe this represents an opportunity to transform the complex into a major leisure destination for Manchester and the north west." Details: www.capreg.com