Manchester City Council and Abu Dhabi United Group, the investment company which also owns Manchester City Football Club, have announced a partnership to deliver 6,000 homes in East Manchester over the next 10 years through a £1bn investment.
The joint venture is to be known as Manchester Life Development Company and activity will initially be focused on sites in Ancoats and New Islington. The first phase will deliver more than 830 homes for private rent.
Recent investment in Ancoats and New Islington by the council include the completion of the Metrolink extension, the creation of new healthcare facilities, a free primary school due to open in New Islington in September 2015 and the regeneration of Central Retail Park on Great Ancoats Street.
Following the completion and approval of phase one development plans, construction work is expected to begin next year. All of the land which is required has been assembled, allowing immediate progress.
The joint venture forms part of the council's residential growth strategy to develop 55,000 new homes by 2027.
The council said that there would be opportunities for other third party investors to come on board, with plenty of other development-ready sites across the city above and beyond the scope of Manchester Life.
Cllr Richard Leese, leader of Manchester City Council, 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 1990's 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."
Marty Edelman, board director of Abu Dhabi United Group, said: "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."