Stalled apartments project sold in £11m land deal
A prime development site in Birmingham city centre has been sold in a deal worth £11m.
The decision by Panther Securities to dispose of the 1.3 acre site in Holloway Head paves the way for a new mixed-use scheme, with planning permission already in place for almost 500 new apartments.
In announcing the deal, Panther has been critical of Birmingham City Council for the slow progress made on the redevelopment, which was to have been part of the Big City regeneration plan.
The site, close to Holloway Circus, received full planning permission in November 2015 for 487 residential units and approximately 5,000 sq ft of commercial space.
The site comprises two long leasehold and three freehold properties acquired by Panther over the last 30 years, together with area headquarters of the Girl Guides.
The planning permission which encompasses the Girl Guides freehold building allows the site to be redeveloped in phases so that the Girl Guides can be rehoused in a new building on a separate part of the overall site.
Panther had been working with architects Corstorphine + Wright on the apartment scheme.
The contemporary design features two connected 14 storey towers comprising 22 studios, 261 one-bedroom and 204 two-bedroom apartments, along with 3960 sq ft ground floor retail space, car parking and landscaped residents’ courtyards.
Panther revealed the deal in an announcement to the London Stock Exchange. It said it had exchanged contracts with the purchaser, while an £850,000 deposit had been lodged in escrow with completion planned for six months’ time. The exchange is conditional on certain conditions being satisfied after which the deposit will be released to Panther. The conditions are expected to be satisfied within the next two weeks.
Panther said the sale represented a good profit over book value, which was £6m in the group’s accounts for the year ended December 31, 2016.
The purchaser, who has not been named, will have to negotiate extensions and an extended user clause to the two existing 100-year leaseholds.
Andrew Perloff, chairman of Panther, said: “As stated in the 2015 accounts the original plan was for the group to agree the extensions before selling, but slow progress was made with the council, as the freeholder.
“This site has been put together and worked on by the group for over 30 years, this being the second planning permission that has been obtained, thus the board is very pleased to finally be near to seeing the rewards of these efforts.
“I suspect many of the Girl Guides who used the property when our original talks began will now be grandmother Guides, but such is the pace of progress in Birmingham. The new owners will no doubt enjoy the benefit of the good will we have acquired with the Guides over the years.”
