A major Jewish social housing development is to be built in the heart of the north Manchester community on the site of the former Zionist headquarters Mamlock House.

Mamlock House, which housed Israel charities for more than 50 years, has been bought by the Manchester Jewish Housing Association for around £540,000. The building was put on the market by owners UJIA for reasons of disrepair and cost-cutting.

MJHA executive director John Gryckiewicz said a suitable site close to the community had been sought for three years after the sale of a care home released assets to develop new premises.

"The search had become extremely frustrating and despite the significant falls in commercial property values, costs were still prohibitive for the association. We have worked very hard to achieve our goal of securing the right site."

He said the primary plan for the Mamlock land was to develop assisted housing to replace its outdated and under-occupied Carmel Court sheltered housing in Crumpsall. Its 19 elderly residents would most likely transfer to the new site.

But the land could also be used for family housing, pending the recommendation of a needs consultation being carried out with Manchester City Council's Strategic Housing Department and Salford University.

Manchester UJIA is pleased the site will remain of benefit to the Jewish community. Vice-chairman Keith Black said: "The leadership of UJIA will now consult with other communal organisations to plan strategically how to best redirect this money."

UJIA had previously said sale proceeds would fund a community centre or other communal building.