KPMG has struck the largest prelet deal in Birmingham for four years this week, after agreeing to house its new regional headquarters at Ballymore’s Snow Hill mixed-use scheme in Birmingham.
As tipped in EG last November, the accounting giant will become the scheme’s first tenant at the 4-acre development, taking a 120,000 sq ft on the top floors of the first 260,000 sq ft building at the £200m development.
The deal kick starts the first 200,000 sq ft phase at Snow Hill, which has outline consent for 721,200 sq ft of offices, 200 flats, shops and leisure overlooking a plaza in front of St Chad’s Cathedral.
The deal also sets a new record rent for the city with a rent of over £30 per sq ft agreed.
The Irish developer landed the requirement ahead of Abstract Land’s nearby 300,000 sq ft Colmore Plaza. KPMG had shortlisted the two buildings from an initial list of 40.
Commenting on the news, Mark Glatman co-founder of Abstract Land said: “Ballymore was in a position to tear up the lease and let them (KPMG) walk out of their old building. Snow Hill won’t be ready until 2009 and we complete in 2008.”
Ballymore edged itself into pole position for the deal back in January when it acquired KPMG’s existing 88,000 sq ft offices at 2 Cornwall Street for £26.5m yield 5.8% from private clients of Jones Lang LaSalle.
KPMG also presently occupies 32,000 sq ft at its Church Street offices.
GVA Grimley is advising KPMG, while CB Richard Ellis and Colliers CRE are letting agents on Snow Hill.
References: EGi News 14/06/06
