Scarborough International Properties has signed an £85 million contract with the Beijing Construction Engineering Group (BCEG) to construct the first phase of its 25 acre Middlewood Locks development in Salford.

Scarborough Chairman Kevin McCabe signed the deal with BCEG Managing Director Xing Yan, with the signing overseen by Scarborough Deputy Chairman and joint Chief Executive Simon McCabe.

Also present at the event were longstanding partners from joint venture partner FairBriar Real Estate, Metro Holdings Singapore chief operating officer Lawrence Chiang and Hualing Group director of investments Michael Rex.

The event marks a key milestone in the first phase development, which is set to be complete in October 2018.

The first phases were granted planning permission by Salford City Council in December last year and are made up of 571 homes and associated commercial space including convenience shops, restaurants and large public space.

The first residents are set to begin moving into the apartments in March 2018.

Kevin McCabe commented: “We are delighted to have signed BCEG for the first phase of our Middlewood Locks development. This marks the culmination of many years of hard work and collaboration between all involved, both in the UK and China.”

Yan added: “We look forward to continuing our work with Scarborough on the development of this significant and strategic regeneration project.”

It is anticipated that the Middlewood Locks development will deliver a vibrant mixed use neighbourhood that will provide 2,215 new homes and 900,000 sq ft of commercial development space including shops, hotels, offices, restaurants, a convenience store and gym in total.

The scheme is being developed around three large basins of the Manchester, Bolton and Bury Canal, which connects to the River Irwell and is a short distance from Manchester city centre.

Phase one has a gross development value of more than £150m and is expected to create in excess of 300 jobs for the local region.