Relentless, Gary Neville’s development company, has formed a joint venture with global investment firm KKR to build the St. Michael’s development, a city centre scheme in central Manchester, England.
KKR said the joint venture is its first real estate investment in Manchester. Initial work on the site is expected towards the end of the year in the commercial phase of the project.
The plans include significant investment in the latest green technology to create a 200,000 sq ft sustainable building, which reflects changes to working practices and has the health and well-being of its occupiers at the forefront of the design.
KKR’s investment was made through its $2.2bn second dedicated European real estate fund, KKR Real Estate Partners Europe II.
Gary Neville of Relentless said: “The team has worked throughout lockdown to bring this project forward. St Michael’s has been challenging but with the support of KKR we are looking forward to delivering this exciting project in Manchester. The Relentless team welcomes KKR to Manchester and can’t wait to deliver what we know will be an exceptional space for our city.”
Charles Tutt, Head of UK Real Estate at KKR, said: “This is a unique regeneration project in a vibrant city. We have worked very closely with Relentless and the project team to get to this point and we look forward to delivering this exceptional development for the benefit of Manchester as businesses seek high-quality office space to meet their ever-evolving needs. This investment reflects our strategy and focus on investing behind best-in-class office projects and alongside expert local developers.”
”The first phase of development will see the former Bootle Street City Police Headquarters brought back to life and the refurbishment of one of Manchester’s most historic pubs, the Sir Ralph Abercrombie, seamlessly blending the old and new within the scheme. Substantial public space will also be created, in the development of Abercrombie Square and a 20,000 sq ft roof terrace in the heart of the city, with impressive views overlooking the Grade I listed Town Hall and library,” said KKR in a statement.
The first phase of St Michael’s is expected to have a build period of approximately 2 years from starting on site.
Later phases of St Michael’s will enhance the hospitality offering in Manchester with a 5-star hotel and residential tower, with works expected to begin in 2022 once the hospitality sector has recovered from the impact of the pandemic.