Ask said it now aims to create a £500m pipeline of commercial property development schemes across the Northern Powerhouse region, supported by Carillion’s developments team.

The deal will see Carillion buying out the four founding shareholders of the business which was formed in Manchester in 2000.

An existing joint venture between Carillion, Ask and Tristan Capital Partners is currently delivering a two phase development at Embankment in Manchester City Centre.

Carillion chief executive, Richard Howson said: “Carillion has established an excellent working relationship with ASK over many years and most recently on the Embankment project in Manchester and this investment will enable both businesses to build on that success at a time of exciting opportunities in the north of England.

“Carillion already has a strong presence in the region delivering prestigious projects in a number of places including Manchester, Liverpool and Leeds and this deal underlines our long-term commitment to the north.”

Ask Real Estate’s managing director John Hughes said: “The Carillion investment into Ask Real Estate is a game changer for the business, presenting us with an exciting opportunity to marry our reputation for delivering high quality developments and spaces in urban centres with the expertise and financial resource of Carillion.”

Sir Howard Bernstein, chief executive of Manchester City Council, commented: “The investment and backing by Carillion as a major UK plc in a Manchester property developer is a further boost to the economic growth of the Manchester city region.

“With pioneering developments such as First Street adding value and creating jobs, Ask has played a prominent role in the transformation of the city region and remains a key partner of the city council.

Carillion said it will work with Ask to identify and deliver commercial property development opportunities with a projected portfolio value of £500m over the next five years in major cities forming the spine of the Northern Powerhouse from Manchester in the North West to Yorkshire and the North East.