Paradise development refutes reports of £100m costs increase
Paradise Birmingham has refuted claims that infrastructure costs at the development have soared by £50m or more, in response to media reports.
It accepted there has been an additional £29m spent on phase one of the city centre scheme, which it blamed on the collapse of contractor Carillion in January and rising construction costs.
A meeting of Birmingham City Council’s audit committee met on Tuesday and discussed the development, which has been subject to delays and changes of governance, with the Greater Birmingham and Solihull Local Enterprise Partnership now more heavily involved.
A spokesperson for Paradise Birmingham, which is a joint venture between Hermes and Birmingham City Council, said: “Costs for infrastructure work for Phase 1 of Paradise Birmingham have not increased by £50m or £100m, as incorrectly reported in the press.”
Phase one consists of One and Two Chamberlain Square, which are both being built now. PwC plans to move in to number one 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.
The spokesperson added: “The increased scope of off-site works for Phase 1 of Paradise, together with a combination of construction inflation and the collapse of Carillion, led to an increase in costs of £29m.
“Private sector funding is in place for our next building, One Centenary Way, and we are awaiting the outcome of the LEP’s considerations regarding a CPO and infrastructure costs relating to Phase 2.”
