Developer secures funding for Colmore Row co-working scheme
Investment and development company Cervidae has secured funding to combine three buildings to provide a new flexible office offering at Colmore Row in Birmingham’s central business district, adjacent to the Paradise regeneration site.
The loan, provided by real estate lender ASK Partners, will be used to combine three Grade II listed office buildings on the southern side of Colmore Row and Bennetts Hill and deliver a mix of co-working and single-occupier office space, connected by a range of leisure and lifestyle amenities, including a gym, roof terrace and new central courtyard events space and bar.
Cervidae committed to the plans early in the Covid-19 pandemic to complete a Category A refurbishment of the three buildings at 6 Bennets Hill, 102 Colmore Road and 104-106 Colmore Row, which will be combined to deliver 26,200 sq ft of co-working space over four floors, with the lower ground floor converted into a new private-use gym.
The development, comprising a total of 33,600 sq ft, will also include single-use office space let on traditional leases, while the remainder will be operated as high specification flexible offices.
The new scheme will benefit from public realm improvements being carried out at the adjacent Great Charles Street and Paradise developments, which continue to attract corporate and commercial tenants including DLA Piper, PwC, Mazars and Dishoom.
Nick Kertesz, investment and asset manager at Cervidae, said: “The demand for quality flexible space in locations that offer a vibrant mix of office, residential, retail, leisure and culture was clear pre-Covid.
“Anecdotally, we expect the co-working element to be in even higher demand post-Covid in strategic gateway cities like Birmingham. It is a testament to the team’s expertise that we were able to originate and commit to the deal with ASK in the middle of last year, despite the difficulties felt across the industry. The funding will enable Cervidae to realise its vision of creating an exciting new flexible office offering in a key commercial location, which is already benefiting from transformative investment at the adjacent sites.”
Daniel Austin, CEO and co-founder at specialist real-estate lender ASK, said: “With Birmingham city centre’s property industry thriving since the announcement of HS2, and notable regeneration and inward investment from major corporate occupiers in the area, we see Cervidae’s scheme as an incredibly exciting proposition, especially given the accelerated shift towards collaborative working environments.”