Kamani Property, a business linked to the family behind fast-fashion giant Boohoo, is to team up with Capital & Centric to develop a hanging gardens residential scheme in Ancoats.

The derelict site at Swan Street, close to the Band in the Wall music venue, will see a £37M development of 120 new homes. Proposals will include a shared roof terrace and private roof terraces for residents within its distinctive roof profile. There will also be ground-floor workspaces and spaces for local businesses to locate, such as a café-bar or deli.

The site, which Capital & Centric purchased with Kamani Property earlier this year, is currently home to two derelict buildings used as an MOT garage and a storage unit.

The development will open up the latest Northern Quarter extension as Ancoats merges into New Cross.

The New Cross district is bound by Swan Street, Oldham Road, Rochdale Road and Livesey Street. In 2015 Manchester City Council approved a Neighbourhood Development Framework for New Cross to guide future development and create a new residential neighbourhood.

A public consultation on the new Swan Street plans has now begun.

“We’re eager to get moving with this exciting project and bring further regeneration to this dynamic area of Manchester," Kamani Property Chief Executive Adam Kamani said. "Our roots are firmly based in this region, and to be able to renovate this derelict site in collaboration with Capital & Centric will provide a further boost to the revival of the neighbourhood.”

Boohoo, the fast-fashion business co-founded by Mahmud Kamani, hit controversy over its supply chain earlier this year, causing reverberations that hit its stock market valuation.

This week it appointed PKF Littlejohn as auditor after PwC pulled out in October.