St. Michael’s Development Secures Investment from KKR for City Centre Scheme
July 28 2021 - 4:00AM
Business Wire
Relentless today announces 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 $2.2bn 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 said: “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, 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.”
Anthony Kilbride, CEO of Relentless said: “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.
Sir Richard Leese, Leader of Manchester City Council, said:
“Navigating the complexities of this development within the
constraints of the site has undoubtedly been challenging, but we
know the outcome is going to be truly transformational for this
part of the city centre - with world class place making key to its
success. This type of investment is the precise antidote we need in
the city to balance the economic impact of the last year.”
Joanne Roney OBE, Chief Executive of Manchester City Council,
said: “Manchester is a city of ambition, and we expect that same
energy from our developers. St Michael’s is oozing ambition - from
the low carbon office space to the public realm. This is the sort
of development that cities crave and the sort of investment that is
vital to our swift economic recovery following the pandemic.”
The first phase of St Michael’s is expected to have a build
period of approximately 2 years from starting on site. Later phases
of St Michael’s will enhance the hospitality offering in Manchester
with a 5-star hotel and residential tower, with works expected to
begin in 2022 once the hospitality sector has recovered from the
impact of the pandemic.
ENDS
About KKR:
KKR is a leading global investment firm that offers alternative
asset management and capital markets and insurance solutions. KKR
aims to generate attractive investment returns by following a
patient and disciplined investment approach, employing world-class
people and supporting growth in its portfolio companies and
communities. KKR sponsors investment funds that invest in private
equity, credit and real assets and has strategic partners that
manage hedge funds. KKR’s insurance subsidiaries offer retirement,
life and reinsurance products under the management of The Global
Atlantic Financial Group. References to KKR’s investments may
include the activities of its sponsored funds and insurance
subsidiaries. For additional information about KKR & Co. Inc.
(NYSE: KKR), please visit KKR’s website at www.kkr.com and on
Twitter @KKR_Co.
About Relentless:
Relentless Developments is Gary Neville’s development company
and is the developer of the St Michael’s project. In recent years
it has completed Hotel Football and the Stock Exchange Hotel but
its main focus has been the successful delivery of St Michael’s. It
intends to develop further opportunities once both phases of St
Michael’s are underway.
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