Canadians head for Paradise as Birmingham lures more foreign investment
A CANADIAN pension fund is set to further its Birmingham shopping spree.
Fresh from taking a half share in the city’s new Grand Central shopping scheme, the Canada Pension Plan Investment Board is reportedly ready to splurge on a new investment in the redevelopment of the city’s Paradise Circus scheme.
The Sunday Telegraph has reported that the CPPIB will this week complete a deal to buy a 50% share in the project, a regeneration project rivalling the recent New Street Gateway project.
The latter ironically paved the way for the Grand Central development in which the CPPIB last month purchased a half share from its joint venture partner, Hammerson, in a deal worth £175m.
The newspaper said the Paradise move came amid growing interest among international investors in the UK’s regional markets.
Andrea Orlandi, Managing Director and Head of Real Estate Investments, Europe, CPPIB, said after the Grand Central deal last month: “Through this joint venture (with Hammerson), we are once again demonstrating our long-term commitment to the UK, and in particular, to regional markets around the country.”
The first phase of Paradise regeneration is now under way. This involves the construction of two contemporary speculative office buildings totalling more than 350,000 sq ft and the enhancement of one of the city’s main public squares.
The project will see the eventual demolition of the Paradise Forum building, together with the old Central Library.
The Paradise redevelopment is being brought forward through Paradise Circus Ltd Partnership (PCLP), a private-public joint venture with Birmingham City Council, with the private sector funding being managed by Hermes Investment Management and Argent acting as development manager.
The enabling and infrastructure works, currently underway, have been funded through an approved £61m investment by the Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP).
Under the new deal, PCLP will retain ownership of the remaining 50% of the completed scheme.
