Gallan Properties has confirmed the pre-sale of 80 residential units in central Birmingham to Irish investment company, Cornerstone Property.
The properties, which sold for £12.9m, are part of Gallan’s redevelopment of the nine-screen UGC cinema, on the third floor of the Arcadian Centre in Birmingham’s China Town.
Cornerstone owner, Ray Bolger, has sold on more than 50 of the properties to Irish investors and expects the scheme to be completely sold by mid-September.
The redevelopment, Gallan’s first major residential venture in Birmingham, includes stripping the cinema space to create 80 residential units, a 4,000 sq ft retail or leisure unit, and 200 car parking spaces.
Gallan Properties acquired the UGC cinema site in partnership with niche developers On Course in November 2003. On Course exited the scheme in May this year.
Demolition work is currently taking place, with construction due to begin in November this year and completion expected in December 2007.
Karen Wilson, director of Birmingham-based Gallan Properties, said: “The Arcadian helps put us on the map in Birmingham and is one of a number of projects live across the UK involving both commercial and residential schemes.
“Our flexible approach and ability to react to opportunities has enabled us to work successfully with investors such as Cornerstone Property to help build a sound portfolio of £30m.”
Bolger, who has invested in more than 400 apartments in Birmingham, said: “We still see a lot of potential, but our biggest issue at present is sourcing stock as many schemes are overpriced to achieve the return necessary to attract investors.
“There is still a move towards living in the city and the rental market is very strong with the age of first time buyers being pushed up towards thirty plus.
“In the next twelve months we’ll be looking at new emerging areas in the Jewellery and Gun Quarter. Here, price points should be more realistic so we can achieve all important yields.”
References: EGi News 18/08/06
