Manchester City Council joint-venture with Abu Dhabi United Group to build more than 6,000 homes in east Manchester

Out-Law News | 24 Jun 2014 | 5:15 pm |

Manchester City Council has announced plans to form a joint-venture with investment company Abu Dhabi United Group (ADUG) for the regeneration of neighbourhoods in east Manchester, with the aim of building more than 6,000 new homes over ten years.

As part of its 'Manchester Life' initiative, the Council proposes establishing the Manchester Life Development Company in partnership with ADUG to oversee redevelopment and housebuilding in the city, with an initial focus on the Ancoats and New Islington districts.

According to a Council statement, land has already been assembled for an 830-home first phase of the partnership's building programme. Most of the homes are expected to be reserved for private rental.

According to the statement, the wider Manchester Life initiative is expected to deliver more than 6,000 homes over a 10 year period, with scope for additional investors to join the project for the later phases. The Council hopes to raise up to £1bn to finance the redevelopment.

"The planned transformation of the eastern edge of the city centre is the single biggest residential investment Manchester has seen for a generation", said Sir Richard Leese, leader of the Council, in the statement. "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 ADUG to create a world class exemplar of regeneration."

The Council expects construction on phase one of the initiative to commence in 2015, subject to the submission and approval of plans.