Hammerson is in talks with state-owned London & Continental Railways to form a joint venture to develop Martineau Galleries in Birmingham.
LCR’s entry is understood to be part of a new strategy that will see it become a delivery vehicle around forthcoming HS2 stations.
Martineau is located near the proposed HS2 link to the city at Curzon Street Station, which is due to become operational in 2026.
The six-acre site has an existing consent for a mixed-use development of 2.9m sq ft. A new scheme is likely to be smaller and office and residential-led with additional retail and leisure.
A source said: “LCR is likely to lead on the office development. One of the big strengths for LCR is its links to the public sector and potential relocations out of London. Hammerson will be keen to tap into that.”
Hammerson said it was “considering a number of potential strategic development opportunities in the medium term”.
Hammerson gained full control of the site in April when it bought out its previous partners on the scheme for around £28m.
