Canadians confirm Paradise Birmingham investment

CANADIAN investors have confirmed they are to take a major stake in Birmingham’s £1bn Paradise Circus redevelopment.

The move comes just a month after the Canada Pension Plan Investment Board agreed to take a half share in Birmingham’s Grand Central shopping centre in a deal worth £175m.

Hermes Investment Management, the £23bn investment, together with the CPPIB have committed to a 50% share in the £150m first phase of the Paradise Birmingham development.

The 1.8 million sq ft project, which is one of the largest development projects in the UK, is currently jointly owned by Hermes Investment Management and Birmingham City Council.

The investment represents an extension of Hermes Investment Management and CPPIB’s regional JV at Wellington Place in Leeds.

Chris Taylor, Head of Private Markets at Hermes Investment Management, said: “The partnership with CPPIB is testament to our well-established relationship and the confidence that we are seeing in Birmingham as a leading business destination.

“The opportunity at Paradise builds on our work with CPPIB at Wellington Place in Leeds and will open the door to a further extension of our JV.”

Andrea Orlandi, Managing Director and Head of Real Estate Investments Europe, CPPIB, added: “This new joint venture in Birmingham builds on, and extends our strong relationship with Hermes Investment Management, and provides an excellent example of CPPIB’s partnership strategy. The Paradise Birmingham development is a high-quality real estate investment in an important region in the UK, and fits well with our long-term investment approach.”

Paradise Birmingham is being developed by city-based Argent. The final mixed-use scheme will include offices, shops, cafes, restaurants and a hotel spread across 10 buildings in total.

The first phase of the project, which started in late 2015, includes the development of two new office buildings, major infrastructure improvements and public realm improvements around Chamberlain Square, as well as the demolition of existing Paradise Forum buildings, including the old Central Library.

Rob Groves, Senior Projects Director at Argent, said: “This announcement is yet another strong indicator of the exceptional quality and confidence in the success of the Paradise development.

“The physical transformation of this important part of Birmingham’s city centre has been under way since January 2015 and will see the delivery of over 350,000 sq ft of office space in our first two Grade A speculative buildings which will be ready for occupation in late 2018.”

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