A large Birmingham office development has received funding from a UK property investor.
M&G Real Estate struck a £200 million deal to fund the construction of Ballymore’s Three Snowhill which set to be the largest ever speculative office development built outside London.
Chancellor of the Exchequer, George Osborne, welcomed the deal saying:
“We want to make the Midlands Britain’s engine for growth and this landmark announcement will play an important part in that plan.
“Not only will this project initially create hundreds of important construction jobs in Birmingham, the resulting space will play home to businesses with thousands of valuable jobs right in the heart of the Midlands – a vital step in us rebalancing the economy in Britain.”
Three Snowhill is an Enterprise Zone site and is a key development within Birmingham’s Snowhill Masterplan. On completion at the end of 2018, it will comprise 385,000ft² of office space and 35,000ft² of retail and leisure, housing around 4,000 workers.
Councillor John Clancy, Leader Birmingham City Council, added:
“This is great news for Birmingham and builds on the city’s now established reputation as a leading centre for the business, professional and financial services sector. We’re the UK’s most investable city and, with the Masterplan for Snowhill providing a bold vision for replicating the success of places like Canary Wharf together with the £1 billion plus being invested in local infrastructure, it is clear that Birmingham’s attractiveness as a location to invest will continue to grow.”
The deal follows M&G Real Estate’s acquisition of Two Snowhill in 2014 and forms the next stage of Birmingham’s wider Snowhill masterplan, which has transformed the northern end of Colmore Row to become the prime location for offices in the city centre.
Ballymore’s Chief Executive, Sean Mulryan, vowed the project will deliver “a landmark building”:
“Ballymore is delighted to announce a start on the third and final phase of our Snowhill scheme. Working with the City, our funding partner, M&G Real Estate, and our main contractor, BAM, we will deliver a landmark building and the final element of what is one of the largest and most prestigious commercial developments in Central Birmingham.”