Manchester Council Gave Man City Owners “Sweetheart” Land Deal, FOI Documents Reveal

A 2015 ten-year contract gave Manchester City’s Abu Dhabi owners a secretive “sweetheart deal” — preferential access to development land across the city — newly released freedom-of-information documents have revealed.

According to the Sunday Times, which obtained the documents, Manchester City Council signed a contract with the Abu Dhabi United Group (ADUG), owned by Sheikh Mansour, giving the group a right of first refusal over land the council planned to sell around Ancoats and New Islington. Any agreed developments were to be administered through Manchester Life, a joint venture between ADUG and the council.

A council source defended the scheme, telling The Times that Manchester Life “was able to offer a scale of investment that delivered a £1.25bn programme of regeneration,” including 1,500 new homes, the preservation of two historic mills and 30,000 square feet of commercial space. But local developers told the newspaper the arrangement hindered their own investment.

The revelation has intensified scrutiny of Prime Minister Andy Burnham, who served as Greater Manchester mayor from 2017 — two years after the deal was signed. The Sun reported on Sunday that Burnham’s flagship “No10 North” headquarters, currently at Heron House in the city centre, is set to move to Ancoats on land once earmarked for ADUG under the arrangement.

The scrutiny follows Manchester City being found guilty last week of 114 charges relating to serious breaches of Premier League financial rules, mainly involving inflated sponsorship revenue. Burnham had praised ADUG as a “huge partner” in the city’s development; Downing Street later clarified that the Prime Minister took the verdict seriously and did not believe any party was above regulatory scrutiny.

Sources

Manchester council gave City owners ‘sweetheart’ property deal — The Times: https://www.thetimes.com/uk/politics/article/manchester-city-council-uae-firm-sweetheart-property-deal-fh8x7b2b8

Burnham’s No10 North ‘to be built on council land after secret 10-year deal favoured Man City owners over UK firms’ — The Sun: https://www.thesun.co.uk/sport/40575500/man-city-deal-council-land