News

Exclusive: BW plans JV to link 1.5m sq ft Birmingham site to canalside

News

Philip Smith

23 July 1998

West Midlands

British Waterways (BW) is planning a joint-venture Birmingham Mailbox to develop a 0.6ha (1.5 acre) waterfront site near Argent’s Brindleyplace.

At the same time, Mailbox has put in an application for a 139,950 sq ft (1.5m sq ft) redevelopment of Birmingham’s former Royal Mail Sorting Office, which will be linked to the canalside by the JV’s land.

This could be the British Waterways’ first deal where it profits from a joint-venture – the government is looking at lifting restrictions which prevent BW from pocketing the profits from JVs on its £177m property portfolio.

Birmingham Mailbox is the new venture of former Brindleyplace director Alan Chatham. It is talking to BW about 16,250 sq m (175,000 sq ft) of office, leisure and residential on the waterfront site at Salvage Turn, close to Richardson Cordwell’s Regency Wharf leisure scheme at Gas Street Basin.

“We are in advanced negotiations with Mailbox about a form of joint-venture, but there are a variety of scenarios being discussed at the minute,” Stephen Compton, BW’s investment and development manager for the Midlands confirmed to EGi.

The plan is to build a footbridge over the canal, linking the JVs scheme and Mailbox’s sorting office scheme to the waterfront and, indirectly, Brindleyplace.

Mailbox has already submitted an outline planning application which proposes up to 46,450 sq m (500,000 sq ft) of office accommodation and up to 74,320 sq m (800,000 sq ft) of retail, A3 and leisure/hotel uses.

It bought the sorting office earlier this year and has already inked in a deal with Crosby, the residential developer, which is buying some 3,530 sq m (38,000 sq ft) of space in the sorting office and taking an additional 10,497 sq m (113,000 sq ft) in air rights. The sorting office development is being funded by Royal Bank of Scotland.

Proposed changes in BW’s status would not affect its role in the Salvage Turn development, but could alter how much of the profits it could keep. Enfranchisement of BW, which would enable it to keep development profits, is one of three options that the government is looking at. The others are keeping BW in the public sector or granting it charitable trust status. The BW board is known to favour the latter option.

For the sorting office, Mailbox has appointed: Knight Frank as letting agent on the hotel and residential units; GVA Grimley and Weatherall Green & Smith to marketing the offices; and Hillier Parker, Davis Coffer and DTZ Debenham Thorpe as joint agents on the shops and licensed leisure facilities.

British Waterways (BW) is planning a joint-venture Birmingham Mailbox to develop a 0.6ha (1.5 acre) waterfront site near Argent’s Brindleyplace. At the same time, Mailbox has put in an application for a 139,950 sq ft (1.5m sq ft) redevelopment of Birmingham’s former Royal Mail Sorting Office, which will be linked to the canalside by the JV’s land. This could be the British Waterways’ first deal where it profits from a joint-venture – the government is looking at lifting restrictions which prevent BW from pocketing the profits from JVs on its £177m property portfolio. Birmingham Mailbox is the new venture of former Brindleyplace director Alan Chatham. It is talking to BW about 16,250 sq m (175,000 sq ft) of office, leisure and residential on the waterfront site at Salvage Turn, close to Richardson Cordwell’s Regency Wharf leisure scheme at Gas Street Basin. “We are in advanced negotiations with Mailbox about a form of joint-venture, but there are a variety of scenarios being discussed at the minute,” Stephen Compton, BW’s investment and development manager for the Midlands confirmed to EGi. The plan is to build a footbridge over the canal, linking the JVs scheme and Mailbox’s sorting office scheme to the waterfront and, indirectly, Brindleyplace. Mailbox has already submitted an outline planning application which proposes up to 46,450 sq m (500,000 sq ft) of office accommodation and up to 74,320 sq m (800,000 sq ft) of retail, A3 and leisure/hotel uses. It bought the sorting office earlier this year and has already inked in a deal with Crosby, the residential developer, which is buying some 3,530 sq m (38,000 sq ft) of space in the sorting office and taking an additional 10,497 sq m (113,000 sq ft) in air rights. The sorting office development is being funded by Royal Bank of Scotland. Proposed changes in BW’s status would not affect its role in the Salvage Turn development, but could alter how much of the profits it could keep. Enfranchisement of BW, which would enable it to keep development profits, is one of three options that the government is looking at. The others are keeping BW in the public sector or granting it charitable trust status. The BW board is known to favour the latter option. For the sorting office, Mailbox has appointed: Knight Frank as letting agent on the hotel and residential units; GVA Grimley and Weatherall Green & Smith to marketing the offices; and Hillier Parker, Davis Coffer and DTZ Debenham Thorpe as joint agents on the shops and licensed leisure facilities.