HSBC concludes deal for 2 Arena Central
AGREEMENTS have been signed sealing Birmingham’s largest commercial property deal for more than a decade.
The agreement will see HSBC forward purchase the 210,000 sq ft 2 Arena Central from Arena Central Developments for use as the new head office of its UK ring-fenced bank serving personal and business customers.
Ring-fencing legislation comes into effect in the UK on January 1, 2019 and HSBC confirmed last month that it would create the new office in Birmingham.
The relocation deal has proved a fruitful one for Birmingham’s professional services community.
The purchase deal is on a 250-year lease, intended to reflect both its commitment to Birmingham and investment in the ring-fenced bank head office.
Subject to securing planning permission at the end of April, work will start on 2 Arena Central in the summer and will be handed over to HSBC in mid-2017 for occupation from early 2018.
Designed by renowned architect Ken Shuttleworth, of Make Architects, the building has the capacity to accommodate up to 2,500 people and will be the first in Birmingham to be constructed to LEED (Leadership in Environmental and Energy Design) Gold accreditation.
Birmingham is already home to more than 2,500 HSBC employees and around 1,000 head office roles will move from London to Birmingham before January 2019.
Situated in the heart of Birmingham’s city centre Enterprise Zone, the 9.2 acre Arena Central site will deliver more than one million sq ft of office lead, mixed-use development. The deal will include the delivery of nearly £10m of new public realm designed by landscape architects, Gillespies featuring over 50% soft landscaping.
Arena Central is being delivered by ACDL, a joint venture between Miller Developments and Pro Vinci Asset Management.
Phil Miller, Chief Executive Miller Developments, said: “The two teams have worked tirelessly to deliver what is the most significant deal in Birmingham for over a decade and will redefine the westside of Birmingham.
“This is great news for both Birmingham and for Arena Central and builds on the city’s burgeoning reputation as a leading centre for professional and financial services operators. We will continue to work with HSBC throughout the construction of 2 Arena Central to ensure the delivery of a first-class, tailor-made commercial environment.”
HSBC selected Birmingham and Arena Central following a review of a number of possible head office locations.
Graham Canvin, Head of Corporate Real Estate at HSBC UK, said: “We want to be the bank of choice in the UK and creating our ring-fenced bank head office in Birmingham gets us a step closer to that ambition for our 16 million personal and business customers.”
HSBC has been supported by both Birmingham City Council and inward investment agency Marketing Birmingham throughout the process.
ACDL was advised by Pinsent Masons, GVA and Colliers; HSBC was advised by Eversheds and CBRE; and Birmingham City Council was advised by Squire Patton Boggs and GBR Phoenix Beard.
The Pinsent Masons team was led by real estate partners Tom Johnson and Lisa Middleton, supported by Chris Dewes, Lyneth Blackwall, Nigel Blundell, Jonathan Vickers, Pam Bhatti, Martin Damms, Matthew Fox, Ruth Chapman and John Christian.
Tom Johnson, Head of Pinsent Masons UK Development practice, said: “As well as being one of the most significant office development deals in the centre of Birmingham for several years, the HSBC HQ project is a clear vote of confidence in the city and the region, and underlines the reputation of Birmingham as a world class business centre. Looking ahead, the redevelopment of Arena Central will have a transformative effect on the regeneration of Birmingham’s west side and the evolution of Birmingham as the Midlands powerhouse.”
The Arena deal is the second major Birmingham property deal for Pinsent Masons in as many months. In March the firm announced that it had advised Persimmon Homes on a £100m deal that will create hundreds of new homes at the former Selly Oak Hospital site.
