Paradise development ‘needs £100m’ to fund rising costs
The Paradise development needs an extra £100m to ensure it is completed as concerns about rising costs and governance emerge.
The development is a joint venture between Birmingham City Council and Hermes Investment Management, but public sector responsibility for the scheme has now been passed to Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP).
A statement from the Council said the change “enabled a more efficient and effective use of monitoring and governance resources”.
The problems were revealed by an investigation by The Municipal Journal. It found estimates that another £50m of funding is needed for phase two of the scheme and up to another £50m for the third phase.
Paradise scheme under construction in August 2018. One Chamberlain Square is the tallest building on the left-hand side and Two Chamberlain Square is the building under development in the centre
Phase one consists of One and Two Chamberlain Square, which are both being built now. Construction suffered major disruption at the start of the year when contractor Carillion collapsed and there will be some delays in PwC moving in next year.
Phase two, which has two office buildings and a hotel, is scheduled to be completed by the end of 2023, with the third phase around Congreve Square planned to be finished by the summer of 2026.
Paradise Birmingham is a key scheme in the transformation of Birmingham city centre, with Arena Central and the Midland Metro extension part of massive investments in the area.
A spokesperson for GBSLEP said: “GBSLEP supports projects that align with the targets set out in its Strategic Economic Plan, and can make a tangible economic impact in Greater Birmingham and Solihull.
“The LEP has received an application from Birmingham City Council to provide additional funding for the Paradise scheme, which is currently being considered.”
