Investec given room to breathe over Kendall Milne scheme

Manchester City Council has afforded the developer more time to deliver the 564,000 sq ft office project, having agreed to approve an amendment to the planning permission to prevent it from expiring next June. 

Investec had requested approval from Manchester City Council to split the redevelopment of the Kendall Milne building on Deansgate into two phases and carry out some minor works – removing a pair of footbridges that connect the House of Fraser department store and adjoining multistorey car park – in order to prevent planning permission from lapsing. 

The city council last week approved this approach, which gives the investor more time to iron out various issues relating to the site. 

Investec now has until 4 June 2024 to carry out the minor works and thus lock in the planning consent. 

A cover letter prepared by Turley that accompanies the application to split the project into two phases, states that negotiations with ground floor tenants in the car park are ongoing, while Investec is also trying to resolve issues around rights of light, “requiring protracted engagements with third parties”. 

In addition, the investor said that it had been unable to progress detailed design or secure funding for the project since planning permission was granted in June 2021 due to constraints around the property’s title. 

Up until November last year, Manchester City Council held a 153-year lease on the MSCP, which needed to be renegotiated to allow Investec’s project to progress.   

Investec claims “significant progress” has been made in ironing out these issues “to the extent that detailed design work can be funded and commenced with confidence”, the cover letter states.  

In the meantime, House of Fraser is continuing to trade from the grade two-listed Kendall Milne building. Investec granted the retailer a rent-free lease in 2019, recognising the importance of maintaining an active use at the prominent site.