Abu Dhabi United Group (ADUG), Manchester City Football Club and Manchester City Council in the UK are set to jointly invest in the phase one of a housing project to build more than 6,000 new homes over the next ten years.
The partnership marks the first phase of the multi-phased Manchester Life project initiated by Manchester City Council in collaboration with other partners over the last 15 years.
The entire project could require an investment of up to £1bn from multiple investors.
Phase one of the house-building project will include the construction of more than 830 new homes in the East Manchester's Ancoats and New Islington areas.
Investment in these areas is intended to coincide with other major construction projects, including the Metrolink extension, new healthcare facilities, a free primary school scheduled to open in September 2015 in New Islington, and the remodelling of Central Retail Park on Great Ancoats Street.
The new, privately rented and environmentally sustainable homes will allow Manchester to achieve its residential growth strategy, under which it plans to build thousands of new homes by 2027.
Manchester City Council leader Sir Richard Leese said that today's announcement adds another commercial dimension to the already significant investment made by the council and ADUG.
"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," Leese said.
UK Chancellor of the Exchequer George Osborne said this investment is great news for Manchester, as it will lead to thousands of new jobs and homes and will help secure the economic recovery across the city and beyond.
"It is a vote of confidence in northern England and our long-term economic plan. It shows global investors want to come to all parts of Britain and is a sign of the potential that exists to create a Northern powerhouse to take on the rest of world," Osborne said.
Commercial Secretary to the Treasury Lord Deighton said this partnership is not only fantastic news for the city of Manchester, but can serve as a model for how successful private investment in housing follows when local government creates the right conditions.
Construction work on the first phase is expected to begin next year.
Image: The Manchester Life project will see the development of more than 6,000 properties. Photo: courtesy of Irwellian on Flickr.