Manchester City owners handed secret preferential property deal by council

Manchester City's UAE owners benefited from a secret, long-standing agreement with Manchester City Council that granted them first refusal over prime public land developments ahead of British competitors.

Disclosures obtained under the Freedom of Information Act and reported by The Sunday Times reveal that the 10-year contract was agreed in 2015. The deal handed Sheikh Mansour's Abu Dhabi United Group exclusive rights to acquire land across the Ancoats and New Islington districts. The scheme was run through the joint venture 'Manchester Life', set up to drive large-scale housing and infrastructure regeneration.

Beyond the Premier League club and the recently opened Co-op Live arena, the Gulf-based group holds extensive residential developments across East Manchester. However, the special treatment granted by local authorities has sparked severe backlash from domestic developers.

A prominent regional property developer told the press that Abu Dhabi investors were "given the red carpet treatment" that was never extended to British companies, claiming the move stifled the domestic construction industry.

The key signatory for the council in the 2015 agreement was former chief executive Sir Howard Bernstein. After stepping down from his council role, Bernstein became a strategic adviser to City's parent company prior to his passing in June 2024 at the age of 71.

A spokesperson for Manchester City Council defended the arrangement, pointing to its broader economic benefits:

"The Manchester Life partnership was established to deliver housing at scale, build investor confidence, and create a platform for new market entrants into Manchester. Focused across Ancoats and New Islington, it drove £1.25 billion in regeneration, delivering 1,500 new homes, restoring two historic mills, and providing 30,000 square feet of commercial space, generating an excellent financial return for the city."

The collaborative agreement has now formally ended following the completion of its 10-year term.

Mayor of Greater Manchester Andy Burnham recently hailed Abu Dhabi as an essential partner in the city's regeneration. His remarks come amid continued scrutiny over the 115 Premier League charges levelled against the club for alleged financial breaches spanning a nine-year period, involving inflated revenue and hidden costs of over £900m to inflate sponsorship deals.

Manchester City's hierarchy vehemently deny all wrongdoing and are fighting the charges, while the overall scale of Gulf investment across the UK remains under intense public and political debate.

Over 3,400 homes have now been completed in the area by a wide range of developers, including social housing and affordable rent initiatives. However, the Manchester Life project and Ancoats represent only one part of the city's broader revival. Today, the investment landscape in Manchester looks dramatically different compared to 2008 and the years immediately following.

The city's population has surged by more than 150,000 over the past two decades, and its economy ranks among the fastest-growing in Europe, driving significant long-term confidence from international investors.

Speaking to the BBC, the Prime Minister praised their contribution: "They have been an essential partner in building modern Manchester and transforming it into the global powerhouse it is today."

Downing Street later issued a clarification, insisting that judicial proceedings are serious and that nobody is above the rules. A spokesperson added: "Whenever any wrongdoing is established, those responsible must face the appropriate consequences."

Manchester City previously stated: "We reject the criticism surrounding the transfer of council land, as well as claims that the local authority did not financially benefit from this partnership."

These developments emerge amid reports of threats from the UAE to Mayor Burnham suggesting billions of pounds could be pulled from major UK tech projects should the club be sanctioned. Labour ministers have actively courted foreign investment to build a 'British Silicon Valley' along the Oxford-Cambridge arc.

Meanwhile, it has also emerged that Manchester City chairman Khaldoon Al Mubarak visited 10 Downing Street for talks with the Business Secretary just days before the Premier League's tribunal verdict.