Innovation Birmingham to “double in size” by 2021

Bruntwood SciTech is to bring forward plans for 100,000 sq ft of space this year as part of the next phase of expansion at its Innovation Birmingham campus.

The expansion is around three times larger than previously planned and reflects the level of pent-up demand for knowledge businesses to be in Birmingham.

Bruntwood regional director Rob Valentine

It has a deal lined up for around 25,000 sq ft within the development and expects to receive high levels of demand from both inward investors and existing tenants looking to expand.

“This will effectively double the size of Innovation Birmingham,” said Bruntwood’s regional director Rob Valentine. “We have got an effective pre-let for one-quarter of it and interest in more.

“After that, we will begin working up outline plans for a second building.”

Plans for the first, digitally-focused building are being drawn up by Associated Architects.

Bruntwood’s purchase of Innovation Birmingham was among the highlights of MIPIM 2018

Bruntwood bought the city centre site from Birmingham City Council a year ago with ambitions to develop the site as part of a broader knowledge district.

It then created a joint venture with L&G, Bruntwood SciTech, last October that has set itself the target of adding 5m sq ft of science and technology space in England’s regional cities in the next 10 years.

Subject to the planning process, Bruntwood SciTech aims to have spades in the ground this year at Innovation Birmingham and for the development to be ready in 2021.

The plans would be the latest boost to the area to the north and east of Birmingham city centre, which is being transformed by university developments and the expected arrival of HS2.

“We have engaged with key stakeholders in that part of town, including Aston University, Birmingham City University, HS2, the city council and the High Speed Rail College,” said Valentine.

“This is about establishing a vision and creating a knowledge district that leverages the special ingredients that part of the city offers – great connectivity, both digital and physical, and two great universities that are outward-focused and looking to create opportunities for the talent they are creating.”

While Bruntwood SciTech’s ambitions can be framed as a response to the dominance of the UK’s golden triangle of Oxford-Cambridge-London, they are looking further afield in their comparisons.

Valentine said the “long-term ambition is to match the likes of 22@Barcelona”, a 4m sq ft scheme that has created an innovation district in a formerly rundown part of the Spanish city.

The involvement of L&G is expected to provide the financial firepower to accelerate what Bruntwood – which reported annual pre-tax profits of £116m last month – would have been able to do on its own.

“What’s really great is their goals and focus are aligned with ours – a focus on jobs and growth in the sectors that will really drive the regional economies. The alignment was uncannily good,” said Valentine.”

Bruntwood invested £14m in the refurbishment of Cornerblock, in Birmingham city centre

It has also revealed this morning that Cornwall Buildings in Birmingham city centre will be among the first phase of a £50m investment programme of its office portfolio across the north and Midlands.

Although Valentine is “not sure what to expect out of this year’s MIPIM” given the political and economic backdrop, he is on board with the idea the city will continue with its current direction of travel.

He said: “Brexit will get sorted one way or another, and that will create some opportunities and some obstacles. We will look to grab the oportunities and deal with the obstacles,” he said.

“I don’t believe we are reaching the end of a cycle whatsoever. I think there’s a lot of joined-up momentum.

“The commitments from people like HSBC weren’t made lightly. They were made very sensibly because of the city’s talent and livability. The city scores very highly on that.

“Aligned with the growth agenda and the connectivity that HS2 will bring, it will mean the city will continue to expand for a long time to come.”