The regional office market has a new hero: ex-Manchester United right-back turned real estate developer Gary Neville.
Neville’s Relentless Developments announced this week that two prelets for office space at its St Michael’s scheme in Manchester have set a new record rent for the city, at £43 per sq ft. Hill Dickinson and Pinsent Masons have struck deals for almost 45,000 sq ft between them.
For Neville, the regeneration scheme is about giving something back to Manchester. “All my investments are in the communities and businesses around Greater Manchester,” he says. “Nearly 3,000 jobs will be created by this development. It will also create huge amounts of money for the public purse and there’s a significant contribution on affordable housing.”
St Michael’s will see historic buildings blended with a new-build glass tower. Neville says the heritage of the site is important but admits it took time for him to recognise its significance. Celebrating the launch of the £400m project with a pint at the Sir Ralph Abercromby pub, which forms a part of the scheme, Neville expresses regret that the pub was until recently just one step away from demolition.
“There are great examples across various old cities around the world where traditional buildings sit next to modern developments,” Neville says. “We made a mistake with this pub as we were looking to remove it from the scheme.
“It’s got a lot of tradition, it’s got a lot of history. And we’re going to bring it back to life and to the point of success.”
Raising the bar
Relentless aims to transform a 1.4-acre site formerly home to Manchester City Police and a synagogue into a new destination for work, rest and play.
“We wanted a name that was meaningful to this site,” says Neville. “We wanted something that represents the communities that have lived on this site. Michael was the defender of the Jewish faith and he’s also the patron saint for the police force.”
The scheme was created with a view to lift quality-of-service standards in Manchester across hospitality, commercial and residential offerings.
“Fifteen years ago, the service offering that we were trying to achieve didn’t exist in Manchester, but I have to say the developments that have been built over that period have brought a lot of the things that we felt [were missing],” Neville says. “But there’s still only one five-star hotel in the city and we think that needs to be corrected.”
He adds: “I don’t see anybody in Manchester in terms of development as a competitor. I had that competitive edge in my football days, but I don’t now.”
Initial proposals for the scheme were approved in 2018 and included the transformation of the existing buildings into a 29-bedroom boutique hotel adjacent to a skyscraper featuring another 191 hotel rooms and 181 flats.
However, the plans were reconsidered in 2021, with the boutique hotel element replaced with offices. The luxury hotel has also been cut in size amid concerns associated with securing an operator in the challenging post-pandemic economic environment.
“These are things that we can’t control at a local level, a micro level. These are things that ultimately will be determined by the general market in the country, but also the global economy. And we just have to react to those things… what else can we do?” Neville says.
“This development is a huge risk, there’s no doubt about that, but you need people who share the passion and belief in Manchester city, and our [partners] Salboy, KKR and Manchester City Council have definitely got that in abundance.”
Backing the right-back
Construction firm Bowmer + Kirkland was appointed to build the £150m first phase of the project, known as No.1 St Michael’s, comprising the office building, a new public square and a rooftop restaurant to be operated by Chotto Matte that could serve up to 900 guests. Works began early last year, with completion expected in the next 12 months.
Construction of phase two, which has a GDV of about £250m, will begin later this summer, featuring a 162-bedroom hotel, 217 homes and 75,000 sq ft of workspace.
“I played 600 games at Manchester United over 15 years, and it’s taken us 15 years to get this project [to this stage], and we still have a long way to go,” Neville says. “We need to work hard to now make sure we get the rest of the building leased.”
Neville says having a strong team has always helped him “to keep going”, both as a football player and a real estate developer. He adds: “You need good partners, good teammates, you need persistence, and don’t lose faith in what you’re doing.
“This has been a challenge all the way through, but I love it. I love the challenge, I love persistence. I love the idea of having to fight to get something. Anything that’s worth achieving in life takes hard work and determination and good relationships with partners, and that’s what we’ve got.”
They share a vision too – one of what the consortium is calling a new “beating heart” of Manchester. “I’ve lived in this city for years, I walk around the city every day of my life,” Neville says. “I want the city to be as good as it possibly can be.”
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