Relentless, former England football international Gary Neville's property development business, has signed three tenants to circa 64,000 square feet at the first phase of its £400 million scheme in Manchester, setting new rental highs for offices in the city.
International law firms Pinsent Masons and Hill Dickinson have signed for 26,842 square feet and 18,192 square feet respectively at No1 St Michael's, one of two buildings at the scheme that sits around the corner from Manchester's iconic Town Hall and Central Library.
Both firms have reportedly signed 10-year leases at the building, while they will pay a rent of £43 per square foot, believed to be the highest in the city. Once finished, the building will provide a total of 186,000 square feet of best-in-class offices over 10 floors.
Pinsent Masons is at 3 Hardman Street, where it occupies 34,660 square feet on the 11th and 12th floors, CoStar data shows. It will relocate to No.1 St Michael's after seeing out a 15-year lease at its former address. Hill Dickinson will move out of its offices at 50 Fountain Street, where it has occupies 29,165 square feet across the entire building, having established its base there in 2012.
The third tenant signed up to the first phase of the scheme is Japanese-Peruvian fusion restaurant chain Chotto Matte, taking 20,000 square feet on the building's rooftop terrace. It also has sites at Soho's 11-13 Frith Street and Marylebone's 26 Paddington Street, both in London.
Speaking at the official launch of the St Michael's development at the Stock Exchange Hotel in Manchester, Relentless co-director Gary Neville told partners that the firm was in negotiations to let another 45,000 square feet at No1 St Michael's. It is understood that talks are at an advanced stage, but the space is not yet under offer.
He said in a statement: "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. I’d like to thank all our partners who have been with me on this journey and remained committed to the vision to transform this pivotal area of the city into a global landmark.
"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. 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."
The former Manchester United defender added: "Progress is now beginning to accelerate as we approach the latter stages of No1 and we set our sights on the world-class leisure and residential elements that will be delivered for No2."
St Michael's is being brought to the market through a collaboration between Relentless Developments and stakeholders KKR, Salboy and Manchester City Council. It will be built in two phases and No.1 St Michael’s, is expected to be the first fully net zero carbon commercial development in the city, both in operation and delivery. It is scheduled for completion in August 2024.
No2 St Michael’s comprises the 41-storey tower which replaces the former synagogue and will contain the 5-star hotel and 217 luxury residences. The tower will also provide 75,500 square feet of additional office space. Relentless is understood to be in the final stages of signing a deal with an "upscale global hotel operator" for the tower.
The Sir Ralph Abercromby Pub on Bootle Street is also being retained as part of the scheme and will undergo a substantial refurbishment, reopening in 2024 to coincide with the completion of No1 St Michael’s. New public realm will also be installed.
CBRE and OBI are listed as leasing agents at the Manchester development.