Arena Central sold ahead of next development phase
Property group Kier has bought the development rights for the next three buildings at Arena Central in a deal reportedly worth around £30m.
The landmark development in Birmingham city centre is already home to HSBC UK while HMRC’s new regional hub at 3 Arena Central is currently being built.
The 240,000 sq ft development, which will become home to 3,600 civil servants by 2020, is being built by Kier and funded by L&G.
Kier will now control the development of the next 526,000 sq ft at Arena Central, which is scheduled to be built by 2026. It was advised on the deal by JLL.
Tom Gilman, managing director for Kier Property North, said: “We are delighted to announce the purchase of this significant 9.2 acre development opportunity at Arena Central.
“This acquisition will substantially increase our activities in the West Midlands and will enable Kier to continue the development of the area as a place where people will want to work, shop and socialise in Birmingham.”
The deal includes two 190,000 sq ft buildings – 4 and 5 Arena Central – and a 145,000 sq ft development at 5 Centenary Square.
Under Miller Developments, two major buildings have been completed, with a third – 3 Arena Central – now under construction to be taken on by Kier.
Andrew Sutherland, joint managing director of Miller Developments added: “Having been involved in the project for a number of years, Arena Central is now firmly established as one of Birmingham’s prime office locations, and we’re delighted to hand the baton to an organisation of Kier Property’s calibre for delivery of the remaining phases.”
