Former council leader defends land deals with Man City owners as scrutiny grows over Abu Dhabi partnerships
Sir Richard Leese has backed Manchester City Council's regeneration partnership with Abu Dhabi United Group, insisting the deals that transformed Ancoats were "good for the city" despite questions over below-market land prices and the absence of affordable housing.
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How much did Manchester give away to get Abu Dhabi's investment, and was it worth it?
That question has taken on fresh urgency since Manchester City were found guilty of breaching Premier League financial regulations through what the independent commission described as "sham" sponsorship deals. Now, the council's own partnership with the club's owners is back under the spotlight.
Sir Richard Leese, who led Manchester City Council for 25 years before stepping down in 2021 and also serves as the football club's honorary president, told the BBC the deals had been "good for the city."
The focus is Manchester Life, a joint venture formed in 2014 between the council and Abu Dhabi United Group (ADUG), the company owned by Sheikh Mansour bin Zayed Al Nahyan that controls City through the City Football Group. The partnership was set up to invest more than £1bn over a decade, building thousands of homes across Ancoats and New Islington, close to the Etihad Stadium.
A deal struck in 2015 effectively gave ADUG first pick of development land in those areas. But a 2022 report by the University of Sheffield, titled "Manchester Offshored," argued that the land was leased at "below comparable rates," that none of the housing built included affordable homes, and that the joint venture companies were ultimately owned by ADUG through firms registered offshore.
What has Sir Richard said in defence?
Sir Richard told the BBC the 2015 agreement was "brokered by the UK government with the UAE government" at a time when development in Manchester had ground to a halt.
"We were still suffering from the 2008 crash, from the recession that followed that," he said. "There was criticism at the time, and there still is now, that the land was given away too cheaply by the city council. The point is, the investment from Abu Dhabi is what created the value."
He added: "I think for the city, one thing about working with Abu Dhabi is everything that they promised they have delivered. So they
Frequently Asked Questions
- What is the Manchester Life partnership?
- Manchester Life is a joint venture formed in 2014 between Manchester City Council and the Abu Dhabi United Group to develop thousands of homes in the Ancoats and New Islington areas.
- Why are the council's land deals facing renewed scrutiny?
- The agreements are being questioned again following a recent ruling that found Manchester City FC guilty of breaching Premier League financial regulations, bringing the club's ownership under the spotlight.
- How has Manchester City Council responded to criticism over land prices?
- The council argues there was zero market interest when the land was originally sold. They maintain that Abu Dhabi's investment directly increased the area's value and that the council now benefits from profit-sharing.