BT seals deal for Birmingham’s largest ever single office letting

BT has announced the letting of 283,000 sq ft at Three Snowhill in Birmingham to create a regional hub which will see up to 4,000 staff based at the building, the largest ever speculative office development outside London.

The deal, which marks the largest ever letting in a single building in the city, will see BT will occupy the majority of floors in the 17-storey development, marking a major investment by the company in the UK’s second city.

BT has acquired the lease and plans to move staff in from the end of the year. The lease of Three Snowhill is part of BT’s ‘Better Workplace Programme’ – one of the largest workplace improvement and consolidation schemes of its type ever undertaken in the UK.

The five-year programme will improve and consolidate BT’s footprint of corporate offices, service centres, contact centres and specialist sites across the country.

Graeme Paton, BT’s managing director of Property and Facilities Services, said it was an exciting development and a clear sign of BT’s commitment to Birmingham and the Midlands.

He said: “Unveiling our new site at Three Snowhill follows our announcement last year, when Birmingham was revealed as one of the first locations that will house our workplaces of the future.

“The city was recently ranked one of the most rapidly improving places to work in Britain and, thanks to securing this office space, we will become one of the largest employers in Birmingham with a visible presence in a strategic and important location*.

“Our new building in Birmingham will bring our people together in an impressive and modern environment, transforming the way we work. Excitingly, it will become a strategic hub location for BT in the UK with a considerable increase in the number of colleagues we employ based in the city.

“We hope our colleagues will be inspired by the new office, which will give them the tools and environment to be able to thrive. This is also fantastic news for both Birmingham and the wider Midlands.”

Paul Faulkner, chief executive of Greater Birmingham Chambers of Commerce, said: “It is wonderful news that a company of BT’s stature has chosen to increase its presence in Birmingham by taking up a prime location in the heart of the city’s business district.”
“This is a further sign not only of Birmingham’s renaissance but also the growing confidence that exists within the city’s business community at present.”
The 17-storey building is one of three office buildings on the four-acre Snowhill Estate.

Ballymore started the development of the estate in 2006, delivering the first two buildings by 2013. M&G acquired Two Snowhill in 2014 and agreed to fund Three Snowhill in 2016.

Existing occupiers on the Snowhill Estate include: HS2, Gowling, BDO, Barclays, KPMG and DWF.

110,000 sq ft of office space remains available on floors 2, 3, 4, 5 and 6 at Three Snowhill.

Martin Towns, head of UK commercial and global capital partnerships at M&G Real Estate, which secured a 20-year lease with BT for Three Snowhill, said: “Where we deliver best in class office buildings, with leading levels of amenity and environmental credentials, we continue to experience strong tenant demand.  Our agreement today with BT further reinforces the success of our UK office development strategy, helping to provide the quality of accommodation modern business requires, whilst also providing attractive investment returns for our clients.

John Mulryan, group managing director at developer Ballymore, said the building formed part of its wider development in Snowhill.

He said: “Ballymore’s investment in the Snowhill Estate has created a new business quarter for the city, comprising the highest International quality offices and award winning public realm. It has also delivered the viaduct, which enabled the tram extension from Snowhill across the wider city centre, and provided direct pedestrian access to the Jewellery and Gun Quarters and Snowhill Station via the new ‘high level’ entrance. We’re very proud of this legacy. It’s reflective of all our partners’ hard work that BT has chosen Three Snowhill.”

Savills and JLL are joint letting agents.

Kelvin Craddock, director tenant representation at JLL, said: “JLL is proud to have advised BT on this landmark deal which underlines the strength of the city’s office market and Birmingham’s attractiveness as a key destination for business.

“Three Snowhill was selected following an extensive review of all city centre options and will provide a dynamic and fit for purpose workplace for its staff.

“BT will occupy the top 11 floors of this 17-storey building which, combined with a presence on the ground floor, provides branding, profile and fantastic arrival experience for both their visitors and employees.”