Manchester City’s Middle East-based owner is investing in a huge housing development close to the ground.
The Abu Dhabi United Group has agreed a joint venture with Manchester City Council which will ultimately aim to invest £1billion in more than six thousand houses in East Manchester.
The first phase, of what has been dubbed the Manchester Life initiative, will see 830 houses built around Ancoats and New Islington. All the land has been acquired and work should start next year. Most of the houses will be managed and rented by the joint venture vehicle, the Manchester Life Development Company.
The local authority believes it will “strengthen Manchester’s economic growth trajectory by providing much needed residential units, helping the city achieve its Residential Growth Strategy to build tens of thousands of new homes by 2027”.
It described Manchester Life as a platform that could attract “multiple investors” over the next 10 years.
Council leader Sir Richard Leese said: “Today’s announcement adds another commercial dimension to the already significant investment made by Manchester City Council and ADUG in East Manchester, and in doing so progresses the regeneration story which began in the 1990s and was accelerated by the 2002 Commonwealth Games and ADUG’s recent development of the Etihad Campus.
“The planned transformation of the eastern edge of the city centre is the single biggest residential investment Manchester has seen for a generation. Building thousands of quality new homes will be a fundamental part of our growth story and will deliver significant socioeconomic impact. We look forward to working with Abu Dhabi United Group to create a world class exemplar of regeneration.”
ADUG director Marty Edelman said: “ADUG, through Manchester City Football Club, has come to know Manchester City Council’s vision for regeneration and its ability to deliver major initiatives effectively. Given Abu Dhabi United Group’s existing long term commitment to Manchester and the council’s economic growth plan, it was a logical decision to look at ways to create a commercial partnership with the city to deliver its wider residential strategy.
“We are effectively investing in the opportunities and positive circumstances created by our joint investments to date. We are extremely proud of the resulting Manchester Life joint initiative that will complete the transformation of the Ancoats and New Islington areas.”
The Abu Dhabi United Group for Development and Investment (ADUG) is a United Arab Emirates (UAE) private equity firm owned by Sheikh Mansour bin Zayed Al Nahyan. It was originally formed as the investment vehicle for the takeover of Manchester City in September 2008.
Since then it has committed £100m to the 80-acre Etihad Campus close to the ground which has training facilities, pitches and other amenities.