Manchester Science Partnerships is to invest £60m in a major expansion of Citylabs.

The science and technology park operator will create Citylabs 2.0 and Citylabs 3.0 on the Central Manchester University Hospitals NHS Foundation Trust campus.

The new development will provide additional space for biomedical companies to grow and co-create new health products, in collaboration with the NHS and academia for the benefit of patients.

It is anticipated that when both are completed and fully let Citylabs 2.0 and 3.0 will bring additional economic growth in excess of £100 million and over 750 new jobs to the city.

The project is the first to be delivered by the Strategic Property Partnership between MSP's parent company, Bruntwood, and CMFT.

Announced in March 2016, the partnership will support the delivery of clinical care, research and innovation, as well as the future development of CMFT's estate.

Rowena Burns, chief executive of Manchester Science Partnerships, said: "It is entirely fitting that we are making this announcement as part of ESOF (EuroScience Open Forum) - an international event which is focused on innovation and collaboration - two of the pillars on which our business is built.

"Manchester's Innovation District will be strengthened further by the development of Citylabs 2.0 and 3.0. Our investment will help create fresh ideas, partnerships and scientific discovery.“

Citylabs 1.0, which opened in September 2014 after a £25m redevelopment, was fully let within 15 months of opening.

It is on track to generate more than 400 new jobs and contribute an estimated £60 million a year to Manchester's economy.

The investment for the new development will be made in two phases, subject to planning consent being received by the end of this year.

Citylabs 2.0 and 3.0 will be located on the corner of Oxford Road and Hathersage Road, opposite Whitworth Park, at the southern gateway to Europe's largest clinical-academic campus.

"By working together in this way with industry, the NHS can ensure health technologies are developed that deliver better outcomes more efficiently to meet current and future needs of our patients and healthcare providers," said Steve Mycio, chairman of Central Manchester University Hospitals NHS Foundation Trust.

Chris Oglesby, chairman of Manchester Science Partnerships and chief executive of Bruntwood, added: "It is great to see our pioneering Strategic Property Partnership with the NHS in Manchester hitting the ground running.

"Our investment in Citylabs 1.0 has been a huge success and we are confident that Citylabs 2.0 and 3.0 will be similarly well received by businesses centred in bio-medical research and innovation.

"Manchester's excellent connectivity, universities and talent pool, combined with its spirit of enterprise means the city is well placed to thrive in the coming years and we are determined to be at the heart of this journey."

We reported recently how a new virtual reality experience is benefiting customers and driving up viewings at Bruntwood

Sir Richard Leese, Leader of Manchester City Council said: "Citylabs epitomises Manchester's proud tradition of cutting edge research, one of our distinctive strengths.

"This major investment sends out a resounding message that we remain an outward and forward-looking city in which those who want to invest and create jobs can flourish."

The £35m project includes the restoration of a currently unused former chapel on the site, which is ear-marked for a café/ dining area with the potential for meeting room facilities, as well as extensive external landscaping and the provision of new gardens for the enjoyment of Citylabs occupiers and other users of the hospital facilities.