Kier Property is to buy Birmingham’s Arena Central for £30m.
The property arm of the UK construction company will acquire Arena Central Developments, a joint venture led by Miller Developments.
The undeveloped site in Birmingham’s city centre has three plots with outline planning consent for mixed-use development.
It comprises 150,000 sq ft at 5 Centenary Square (formerly 1 Arena Central), 200,000 sq ft at 4 Arena Central, 200,000 sq ft at 5 Arena Central and the public realm at Bank Square.
Miller Developments purchased the 9.2-acre site in 2001. In 2007 it sold the Alpha Tower, Dandara BTR tower and a 250-bed hotel.
The privately owned developer racked up debts of £600m in the financial crisis and agreed a restructure of its debt and secured facilities at the beginning of 2012.
In 2015 it sold 210,000 sq ft to HSBC at One Centenary Square, in 2016 the University of Birmingham bought the old Municipal Bank site and the following year L&G forward-funded the 240,000 sq ft development at 3 Arena Central, which is expected to complete by spring 2020. HMRC has signed a 25-year lease for the building.
Miller Developments is split into four arms: Arena Central, Omega, schemes in Aberdeen and elsewhere, and the strategic land-buying business.
Contracts were exchanged two weeks ago. CBRE advised Miller Developments on the sale. JLL advised Kier.
Miller Developments declined to comment. Kier was approached for comment.
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