St Michael’s development in Manchester City centre secures investment from KKR
Relentless has formed a joint venture with KKR to deliver the St Michael’s development in central Manchester. Initial work on the site is expected towards the end of the year in the commercial phase of the project.
The joint venture, KKR’s first real estate investment in Manchester, will combine Relentless’s local knowledge and operational expertise with KKR’s capital and resources to deliver a best-in-class office space and new public realm for the city. 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 USD2.2 billion second dedicated European real estate fund, KKR Real Estate Partners Europe II.
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.
Gary Neville of Relentless says: “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, says: “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.”
Anthony Kilbride, CEO of Relentless, says: “This moment is 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. Our teams are aligned on the vision to deliver a world-class sustainable commercial space and new public realm in the city and will be working on the final stages of design in the coming months.”
The development has the full support of Manchester City Council.