Developers in Birmingham are racing to be first out of the ground with major new office schemes as they fight to land one of three large requirements circling the city.
Miller Developments and Bridgehouse Capital will submit a planning application next week for the next 200,000 sq ft phase of the 2.3m sq ft Arena Central scheme.
The joint venture partners are already seeking a funding partner for the 140,000 sq ft first office phase but have decided to press ahead with the second phase in anticipation of significant upcoming demand.
Rival developer Ballymore has appointed Savills to find a funding partner for the 250,000 sq ft Three Snowhill.
The move comes after the third phase of the 1.2m sq ft Snowhill development was identified as the likely first scheme to come forward under Birmingham council’s £600m Snow Hill masterplan, which was published this week.
Ballymore shelved ambitious plans for a 43-storey residential tower and Birmingham’s first five-star hotel at the site during the recession. But following a 100,000 sq ft letting to HS2 Ltd last year at Two Snowhill, it is now bringing forward an office scheme to take advantage of the shortage of grade-A space in Birmingham city centre.
CBRE director Gary Cardin, chair of the Colmore Business Improvement District, which jointly launched the masterplan, said: “Three Snowhill will be the first development opportunity within the Snow Hill masterplan to come forward. It already has consent. It just needs funding to be secured.”
Both developers are vying to land one of three large occupiers searching for space in Birmingham, according to a source.
These include a 350,000 sq ft requirement launched by JLL last week for an undisclosed client.
Deutsche Bank, Jaguar Land Rover and Network Rail are among those considering major office moves in the city, the source added.
