Ballymore is poised to secure two of Birmingham’s largest office requirements at its £200m Snow Hill development in the city centre.
High street bank Barclays is about to agree to take its 100,000 sq ft requirement to No 1 Snow Hill, the first office phase of the 1m sq ft mixed-use scheme.
Solicitor Wragge & Co is understood to have selected part of phase two. It plans to take 230,000 sq ft in the 310,000 sq ft No 2 Snow Hill for its long-running requirement.
The law firm will move from 55 Colmore Row, where it occupies 135,000 sq ft. But its lease does not expire until 2017.
A source close to the deal said: “Wragges will have to pay a lot to get out of its lease. It hasn’t agreed its exit strategy with landlord Morley yet, but it has all but agreed terms at Snow Hill.”
Phase one of Snow Hill is under construction and is scheduled for completion in 2009. KPMG has already signed for 120,000 sq ft at No 1 Snow Hill. Phase two will start on site next year if the deal with Wragges goes ahead.
The lettings will be a victory for the Irish developer over Carlyle Group’s neighbouring Colmore Plaza. The 300,000 sq ft Colmore Plaza was favourite to secure the Barclays requirement and, until last year, looked set to land Wragges.
Those talks broke down, however, when Abstract Land sold the scheme to Carlyle.
Carlyle wants to set a record rent in Birmingham, and is looking for up to £36 per sq ft. Headline rents in Birmingham are £32.50 per sq ft.
Jones Lang LaSalle is advising Barclays DTZ is acting for Wragges CB Richard Ellis and Colliers CRE are the letting agents at Snow Hill.
