At one stage Bam was tipped to take the job, but Carillion was finally confirmed as the winner today.

Manchester-based developer Argent and  joint venture partner, the Greater Manchester Property Venture Fund are redeveloping the 14-storey building into a 273,000 sq ft landmark.

Local firm Connell Brothers is carrying out the demolition of the existing offices, due to be completed by April, when Carillion will start building work.

The building has been designed to achieve a BREEAM ‘excellent’ rating and will incorporate office floorplates of up to 22,500 sq ft.

John Rodaway, accounts director at Carillion, said: “One St Peter’s Square is not only a building of significant architectural merit but it will also create a new landmark building at the gateway to the city centre.

“We have previously worked with Argent and we are very happy to have the opportunity to continue our successful working relationship.”

Argent project director James Heather added: “While we are delighted to have a 63,000 sq ft pre-let to KPMG, we still have almost 210,000 sq ft of Grade A office space available.

He added: “As one of the only developers currently speculatively building commercial property outside of London it further reinforces our commitment to the scheme and confidence in its unique offering and setting.”