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The government has given the go-ahead for a 拢113m PFI housing development aimed at transforming the Brunswick area of Manchester.

Manchester City Council said the government had now given the green light to the value for money business case for the 拢113m regeneration scheme, which will see a major transformation of the Brunswick area through a 25-year programme of investment.

The Brunwick plan will see 500 homes built and 650 council houses refurbished. The plans also include a new shopping area and a 60-bed sheltered accommodation facility.

Manchester City Council can now move forward and choose a preferred bidder to run the PFI scheme, with the council evaluating final bids from two consortiums: Fern - comprising Harvest Housing and contractor Gleeson; and Solutions 4 Brunswick - comprising Contour Housing and contractors Galliford Try and Mears.

The council said it would select the preferred bidder later this year, with work scheduled to start early in 2013.

Cllr Jim Battle, deputy leader of Manchester City Council, said: 鈥淭his announcement takes us a step closer to a new Brunswick, and although we still face a number of hurdles, this is a welcome announcement that gives some light at the end of the tunnel for residents who have waited years for these plans.

鈥淲e have a fantastic community here that will no doubt continue to prosper as the regeneration plans come to fruition. Being so close to the city centre, coupled with the promise of new homes and an improved neighbourhood layout, I can see a bright future for Brunswick.鈥�