The UK Government has welcomed the first phase of new £1bn ($1.7bn) Manchester housing initiative following a new partnership between Manchester City Council and Abu Dhabi United Group, the owner of Manchester City Football Club.
The British Chancellor of the Exchequer, George Osborne, confirmed the first phase of an initiative that will see up to £1bn invested over the next 10 years in a new house building project called “Manchester Life”.
The investment comes the day after the Chancellor set out his vision - in a speech in Manchester - for a northern economic powerhouse by better connecting the great cities of northern England.
The first phase of the Manchester Life project will deliver over 830 new homes and but it is hoped the partnership will kick-start the development of more than 6,000 properties.
Manchester Life Development Company, a joint venture between the two partners will be established to oversee the development with construction expected to begin next year.
Manchester City Football Club was acquired by Sheikh Mansour bin Zayed al Nahayan's Abu Dhabi United Group in 2008 and posted a loss of £51.6m ($85.4m) in its latest financial year.
Manchester Life builds on the regeneration activity in East Manchester that has been led by Manchester City Council in collaboration with a range of partners over the last 15 years, accelerated by Abu Dhabi United Group's recent development of the Etihad Campus and its City Football Academy.
“This investment is great news for Manchester. It will lead to thousands of new jobs and homes and will help secure the economic recovery across the city and beyond,” Osborne said.