HSBC is in serious discussions to consolidate its entire West Midlands operations into Andy Ruhan’s and Miller Developments’ Arena Central.
The world’s third-largest bank is eyeing the 2m sq ft mixed-use scheme in Birmingham to house its requirement of up to 500,000 sq ft.
The prelet would soak up the whole office element in the proposed £400m development.
HSBC currently operates from a number of smaller offices across the region.
A source said: “HSBC is looking at a range of scoping options with CB Richard Ellis.
“A deal has not been done yet, but it could happen quickly, depending on what route HSBC takes.”
Arena Central, which sits on a 7.6-acre site in the Broad Street area of the city centre, is one of just two sites in the area that could accommodate HSBC.
It initially looked at Ballymore’s 1m sq ft Snow Hill development, but discounted the scheme because it did not want to share a site with other occupiers.
Local agents said HSBC was also considering retaining its existing 100,000 sq ft site on Calthorpe Estate’s 1,500-acre plot in Edgbaston, on the edge of the city centre, and taking between 100,000 sq ft and 150,000 sq ft of extra space to consolidate its many smaller offices under one roof nearby.
Calthorpe Estates already has consent for a 102,000 sq ft office block – Calthorpe House – which is scheduled for completion next year.
HSBC’s plans to consolidate its Midlands offices follow the launch of a 600,000 sq ft office requirement in Sheffield in May.
HSBC will move out of five city-centre offices in Sheffield, and has already held talks with Castlemore to move to its £315m West Bar scheme.
CBRE was appointed to carry out a review of HSBC’s global property portfolio in October 2005.
The review also included its London offices, which led to the £1.1bn sale of its 1.1m sq ft HQ in Canary Wharf to Spanish property company Metrovacesa.
None of the parties involved were available for comment.
