Three huge developments are transforming the centre of Birmingham and are set to reorient the city as it undergoes its biggest boom since 2006.
To the west, Arena Central and Paradise Circus will deliver around 20 acres of development and millions of square feet of new office space. More importantly, they will connect the city’s business district back up with Brindley Place, reorienting the business focus of the city.
Meanwhile, on the other side of the city centre, the recently announced redevelopment of the Smithfield Wholesale markets is promising a new retail and residential quarter to the south of the city – ending the current drop off after the Bullring.
So what stages are the three at, and what are we waiting on now?
Paradise
Who
Argent, Hermes and Birmingham City Council, through Paradise Circus Limited Partnership
What
1.8m sq ft of office development across 10 buildings, a four-star hotel, and extensive remodelling of the public realm to link the western end of the city.
Funding
Already in place and leading to speculative development. The private sector funding is being managed by Hermes Investment Management which has partnered with Canada Pension Plan Investment Board.
Status
- One Chamberlain Square is now well out of the ground, and has signed PwC to take 90,000 sq ft, leaving another 82,000 sq ft. It should be finished and occupied by 2019.
- The core of Two Chamberlain Square is rapidly emerging, though no prelets have been announced for its 184,000 sq ft.
- The roads to the north of the site have been extensively reconfigured.
Next milestone
Phase 2 includes the demolition and reconstruction of Chamberlain House, which will become the 280,000 sq ft One Centenary Way. This is a more complex stage of the development, as it will be built over the redirected A38. The existing Copthorne Hotel on the site has an option to take the 22-storey hotel in this phase.
What does it need?
More tenants, but with funding in place, Argent is confident it will be finished by 2026.
Chris Taylor, head of private markets at Hermes Investment Management, says: “Since work began on the first phase of the development in January 2015, we have seen excellent progress, with PwC already secured for the first building, work well under way on the second phase, and plans for the third now being presented. The dramatic enhancements to the accessibility and quality of environment within the city centre will now enable Birmingham to regain its status as a global city of enterprise and talent.”
Arena Central
Who
Miller Developments
What
A 9.2-acre site including 670,000 sq ft of office, 530,000 sq ft of residential and a 250-bedroom hotel
Funding
On a building-by-building basis, essentially relying on prelets.
Status
- The 210,000 sq ft phase two has been forward sold to HSBC, and is now under construction.
- It has been reported that the 240,000 sq ft phase three is under offer to HMRC, with L&G providing the funding.
- The 142,000 sq ft phase 1 has planning, while phases four and five have just outline consent.
- Dandara has bought the residential elements and is building these out (no. 5 and 10 on plan)
- The Crowne Plaza Hotel is staying put (no. 8), while next door a 250-bedroom Holiday Inn is being built (no. 8*).
Next milestone
Phases one, four and five are all still looking for prelets before construction can start, however, most of the other phases are under construction or set to start soon. HSBC is scheduled to take occupancy in 2018.
Smithfield Market
Who
Birmingham City Council
What
42 acres of land in council ownership to the south of the city centre that the council wants to develop into a new mixed-use quarter for the city.
- The council is looking for a mixed-use development, more retail-oriented due to its existing location, with a substantial residential element.
- When announcing its search for a partner, it said: “Our vision is to build a legacy for the city; a place for people that stands the test of time as an international exemplar of sustainable development. This vision includes new vibrant retail markets; exciting family leisure and cultural attractions; an exemplar residential neighbourhood of 2,000 new homes; public squares and integrated transport facilities.”
- Initial plans are for 3.2m sq ft of commercial floorspace, 3,000 jobs, £470m in additional GVA and a £1bn investment value
Funding
None announced yet – development partners proposals are to include funding agreements.
Status
The council appointed Cushman & Wakefield as its adviser in April 2017 to help it find a partner, the search for which was officially announced in August.
Next milestone
A shortlist of developers could be announced as soon as this month, while the partner could be chosen early next year. More detailed plans cannot be drawn up until a partner is chosen.
Jonathan Turner, partner in Cushman & Wakefield’s development and planning team, said: “Smithfield will be one of the most interconnected regeneration development opportunities in the UK. Ideally located in close proximity to New Street station, close walking distance to Moor Street station and the new HS2 terminus, which will open in 2026, it will connect the core retail areas of Birmingham to include New Street/High Street, the Bullring and Grand Central shopping centre.”
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