Gary Neville’s £400m mixed-use Manchester development has set a new headline rent for offices in the city with record-breaking deals for law firms Pinsent Masons and Hill Dickinson.
The firms have signed 10-year leases for 26,842 sq ft and 18,192 sq ft respectively at No1 St Michael’s – the scheme being delivered by the former Manchester United and England defender’s Relentless Developments – at a price of £43/sq ft.
The development is separated into two phases. Phase one, branded No1 St Michael’s, is a joint venture with investment firm KKR and launched on 5 July offering nine floors of office, a rooftop restaurant and two food and beverage outlets.
Neville, director at Relentless Developments, said: “This is an extraordinary scheme that has been no less than 15 years in the making and we believe it to be the most sustainable commercial space in the city.
“We’ve 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.”
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.”
Keith Feeny, director of IT and operations at Hill Dickinson, labelled the new development “remarkable”.
“Our decision to invest in St Michael’s represents our commitment to the continued growth of Hill Dickinson, our commitment to the wider cultural investment in Manchester as a city and a real desire to improve the sustainability of our operations,” he said.
No 2 St Michael’s – a joint venture with property developer Salboy – comprises the tower containing a 162-bed five-star hotel, 217 apartments plus an additional 75,000 sq ft of office space. Construction of the 41-storey tower is set to commence in the coming weeks.
Relentless said it is in the final stages of signing a deal with an up-scale global hotel operator for the tower, which will be announced in the autumn. Apartment sales will also commence after the summer.
Councillor Bev Craig, leader of Manchester City Council, said the scheme will be a “defining project” for the city centre.
He added: “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.”
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