Abu Dhabi United Group (ADUG), the private equity firm that owns Manchester City Football Club, is set to build 6,000 houses in Manchester in a deal worth £1bn.
The development will be part of a 10-year agreement with Manchester City council which will see the rejuvenation of several of the city's previously run down areas, beginning with the building of 830 privately-rented homes near to the Etihad stadium.
The partnership will see ADUG providing equity and debt finance while the council contributes land. Work will begin next year.
There is a drive by the government to see a stronger private-rental sector to offset the problems of rising house prices, so such developments will be welcomed. As house prices continue to rise far faster than either inflation or real wages, there is an expectation that more people will turn to renting.
The Manchester Evening News quotes Sir Richard Leese, the Labour leader of the city council, as calling the development "the single biggest residential investment Manchester has seen for a generation".
It is hoped the plan will not only provide quality housing but also create jobs across several sectors including leisure, retail and construction.