The owner of Manchester City F.C. has agreed to invest in a joint housing development venture with Manchester City Council that would see 6,000 houses built close to the ground.
The Abu Dhabi United Group (ADUG), a UAE-based private equity business, plans to invest £1bn as part of the venture.
The project, named the Manchester Life initiative, will be split into phases, with the first seeing up to 830 houses built in the New Islington and Ancoats areas. The scheme is set to commence next year, because all the land needed to go ahead with it has already been acquired.
In a statement released by the city council, it is explained that this venture will strengthen the economic growth trajectory of the city by providing residential buildings that are much needed, and could attract investors in coming years – possibly leading to a future increase in office space in Manchester. The majority of the houses are set to be managed by Manchester Life Development; a joint venture vehicle.
Sir Richard Leese, the council leader, has highlighted that these plans add another dimension to investments already made by both parties to regenerate the East Manchester area; a project that was started in the 1990s and has been accelerated by the legacy of the Commonwealth Games hosted in the city in 2002. ADUG’s developments of the Etihad Campus in recent years, including the construction of sporting facilities and amenities, have also sped up the proceedings.
The move will help Manchester achieve a Residential Growth Strategy that was put into place to construct tens of thousands of new houses by 2027.