Gary Neville’s Relentless Developments has set a new headline rent for Manchester offices after two law firms signed prelets for its £400m St Michael’s scheme.
Pinsent Masons has taken 26,842 sq ft and Hill Dickinson has signed for 18,192 sq ft on 10-year leases at No.1 St Michael’s. They will pay £43 per sq ft.
St Michael’s will be delivered in two phases. No.1 St Michael’s, which is being delivered in a joint venture between Relentless and investor KKR, is due to complete this year. It will provide nine floors of grade-A offices and a rooftop restaurant by Chotto Matte. It is also expected to be the first fully net zero carbon commercial development in the city centre, in both operation and delivery.
Construction of No.2 St Michael’s, which is a joint venture between Relentless and developer Salboy, includes a 41-storey tower and is set to start in the coming weeks. When complete, it will comprise a 162-bedroom, five-star hotel, 217 homes and 75,000 sq ft of office space.
Relentless is in the final stages of agreeing a deal with a global hotel operator for the tower, which it said would be announced in autumn 2023. Sales of the apartments will also begin after the summer.
The scheme, on the site of the former Manchester City Police headquarters, has been designed by Skidmore, Owings & Merrill and Hodder & Partners. It is set to complete in 2027.
Neville said: “We have worked so hard to create a development that is distinctive in both its imaginative design and heritage as well as its location connecting the city’s business district with the historic civic quarter. Signing a deal with two of the world’s most reputable law firms and setting a new headline rent as we launch is testament to that.
Bev Craig, leader of Manchester City Council, said: “St Michael’s will be a defining regeneration project for our city centre. Following a long road to bring this challenging, long underused site forward, it’s a welcome milestone that construction will start over the summer on a new icon of our city’s skyline – and the latest destination neighbourhood for Manchester – supporting the city’s growth and creating employment opportunities.”
Neil Black, Manchester office head at Pinsent Masons, said: “Manchester is an important market for legal and professional services serving as a hub for investment and development across the North West region. As a multinational business collaborating with a range of domestic and global clients, it’s exciting to see the region thrive as a leading UK business centre. Our move into St Michael’s signals an important era for us as we continue to develop and invest in our people, clients and communities across the region.”
To send feedback, e-mail chante.bohitige@eg.co.uk or tweet @bohitige or @Gre_Eve
