Ex-footballer Gary Neville’s property venture Relentless has teamed up with UK investment giant KKR on its £200m St Michael’s development in central Manchester.
The joint venture is KKR’s first property investment in the city. It will help fund a new 200,000 sq ft sustainable office building, as well as new public realm, via KKR’s $2.2bn (£1.6bn) second dedicated European real estate fund.
The first phase of the St Michael’s development will involve revamping the former Bootle Street City Police Headquarters and refurbishing one of Manchester’s most historic pubs, the Sir Ralph Abercromby.
New public space will also be created, in the development of “Abercrombie Square”, as well as a 20,000 sq ft roof terrace with views overlooking the Grade I listed town hall and library.
Initial work on the first phase of the project is expected to begin towards the end of this year, with expected completion in two years. Later phases of the project will involve building a five-star hotel and residential tower.
Neville, pictured, said: “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.”
Anthony Kilbride, CEO of Relentless, added that the move was “a catalyst to get the project on-site by the end of this year”.
“The Relentless team and KKR have already done a lot of the groundwork needed to enable us to move the project forward quickly.”
Relentless, which has already completed Manchester’s Hotel Football and the Stock Exchange Hotel, is believed to be lining up further development opportunities once the St Michael’s project is underway.
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.”
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