UAE property empire in Manchester grew to 260 football pitches while affordable housing fell short

Abu Dhabi's property holdings in Manchester expanded to cover an area equivalent to 260 football pitches at their peak in 2023, according to a Guardian analysis of land registry data and public records. The investment surge began after the 2011 Arab Spring, when the UAE pressed the UK government for stronger action against the Muslim Brotherhood, leading to a secret Whitehall unit brokering deals with the oil-rich emirate.

In 2013, David Cameron's government asked Manchester City Council to prepare investment proposals for the UAE. The resulting £1 billion Manchester Life partnership saw the council sell prime city-centre land to Abu Dhabi for £5 million, with a pledge to build 6,000 homes. A decade later, only 2,039 homes have been delivered by Manchester Life — one-third of the target — while other developers added 2,839 units, leaving the total nearly 20% short.

Despite a longstanding council policy requiring at least 20% affordable housing, only 8% of the 4,878 new properties qualified, and none came from Manchester Life. The contrast is stark: a five-minute walk from the development's Michelin-starred restaurant, a former Methodist church operates as an emergency food bank serving some of England's most deprived neighbourhoods.

"It's bound to cause resentment," said Mark Blake, chief executive of Manchester Central Foodbank. "When it's in your face and during a cost of living crisis it potentially could lead to some unrest." Lib Dem councillor Alan Good warned Manchester risks becoming "a northern version of London" as 20,000 people remain on the social housing register.

Questions also surround Greater Manchester Mayor Andy Burnham. As a candidate in 2016 he criticised taxpayer-funded loans to large property firms, but a year into office approved a £55 million loan to Jersey-registered companies owned by Sheikh Mansour bin Zayed al-Nahyan, Manchester City's owner. Burnham also held six meetings with the club's leadership — five more than initially disclosed. The Greater Manchester Combined Authority says the loans were repaid in full and met lending criteria, but its scrutiny committee is investigating.

A 2015 "collaboration agreement" gave Abu Dhabi first refusal on city-centre land and included a clause requiring the emirate's written approval before the council could announce the deal. Former council property officer Dominic Hayes resigned in 2018 over concerns about the arrangements. University of Sheffield researchers later concluded the council had "sold the family silver too cheaply," noting it paid £42 million for an adjacent retail park — at least six times the per-acre price of the land sold to Abu Dhabi.

Former council leader Richard Leese, who served 25 years before becoming honorary president of Manchester City, defended the partnership: "That's the way the city works — in partnership." The council says it received nearly £3 million in profit-sharing and £17.6 million in council tax, but the full terms and precise taxpayer return remain undisclosed.

Source: The Guardian Business.