Property in Brief: Developer behind transformation of Carillion HQ secures £4.5m funding; Redevelopment of seven-storey office building starts; and more
The developer behind the transformation of the former headquarters of collapsed construction firm Carillion has secured funding for the project’s second phase.
Developer The Studios24 has agreed a £4.5m finance package with Assetz Capital following completion of 93 rooms in phase one and the start of 72 rooms in phase two.
The Studios24, at Birch Street, will eventually have 218 en-suite studios, arranged as apartments, with shared facilities including kitchens, working and relaxation areas, a café and bar, gym, laundry and high speed internet.
Around 40 jobs have been created by the development, which is breathing new life into a dilapidated 12-storey office building – the former HQ of Carillion – and helping to transform the neglected Westside area of the city.
Barry Glantz, managing director of The Studios24, said: “It’s been amazing to watch our dream of bringing co-living to Wolverhampton become an exciting reality. Now, with funding provided by Assetz Capital, we can complete phase two and move on to begin phase three of the project, enabling us to offer more rooms to people looking for great value high quality accommodation.”
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Developer Evenacre has started the £3.5m redevelopment of 4 St Philip’s Place in Birmingham.
The seven-storey office building is being overhauled to provide a new entrance and reception area, with the addition of cycle storage and shower facilities.
Upon completion at Easter 2019, there will be 24,330 sq ft of Grade A office space, with open-plan floorplates from 3,500 – 4,000 sq ft.
Evenacre, a Birmingham-based property investor and developer, has refurbished four other historic buildings in the city: 158 and 170 Edmund Street, Victoria House and 122 Colmore Row.
Platform 21, opposite New Street Station, is currently under development.
Evenacre is managing the project, designed by Associated Architects, on behalf of landlord Arbuthnot Latham & Co.
Savills has been appointed to let the office space.
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The industrial property sector is the lowest yielding property asset class for the first time in many years, prospering while the retail sector struggles, according to a commercial property investment manager.
Tim Matthews, chief executive of Birmingham-based specialist real estate asset management company, Blue Marble, says that for the first time in his 30 year career industrial property is no longer the “ugly duckling” of property investment.
Matthews says: “As returns in the industrial sector once again led the way in CBRE’s November Monthly Index, with total returns of 1.4% over the month, reflecting 1% capital growth and 0.6% rental value growth, the equivalent yield for industrial has fallen again reflecting the appetite from investors to acquire product in this sector.
“This is in stark contrast to the continuing gloomy picture for retail which saw a fall in capital values of 1.9% over the month, while rental value moved into negative territory at -0.9%, with yields moving out for high street, out-of-town and shopping centres.
“High street retailers’ struggles have been well documented with a number of business failures and CVAs, most notably HMV, House of Fraser going into administration and Debenhams calling in KPMG to advise.
“By contrast the industrial sector is taking up the slack. While it is regrettable that jobs are being lost on the high street over the past few months, new jobs have been created in the distribution sector to help meet our changing demands of retail purchasing: namely online shopping.”
