AUDIO: Developers Ballymore and Hines have secured one of the largest relocations out of London in the past five years. Government-owned infrastructure company HS2 today confirmed that it has signed for 100,000 sq ft of new office space at Two Snow Hill on the edge of Birmingham’s city centre office core.
Although terms were undisclosed, rents are likely to be between £28 and £30 per sq ft at Two Snowhill. HS2 will consolidate construction staff from its various London offices, including Sanctuary House in Westminster and Eland House in Victoria as well as its Canary Wharf operation into the 14-storey, 310,000 sq ft building, which was completed earlier this year. The deal also includes expansion space to house as many as 1,500 staff to work on the £50bn high-speed rail project.
The letting is a triumph for Birmingham city council, which has spent the best part of a year brokering the transaction and steering HS2 away from one of its original options, to consolidate into a single building in central London.
Council leader Sir Albert Bore, along with secretary of state for transport Patrick McLoughlin and HS2 chairman Sir David Higgins this morning confirmed the move at an event at Birmingham City University’s Parkside building in Eastside.
McLoughlin also launched Birmingham Curzon Regeneration Company, the delivery vehicle responsible for regenerating nearly 350 acres around HS2’s Curzon Street rail terminus in the city’s Eastside district. BCRC is expected to contribute a £1.3bn boost to the local economy, create 2,000 new homes, 14,000 new jobs and 6.5m sq ft of new employment space.
The new body will work in partnership with the council, Greater Birmingham and Solihull Local Enterprise Partnership, HS2 Ltd and central government, which will all be represented on the company’s board.
To accelerate regeneration of the Curzon Street site, the deal will deliver a further £140m investment to be used to extend the Midland Metro. The extension will bring tram services into the heart of the Birmingham Curzon area and link the HS2 terminus to the local transport system.
Additionally, the GBSLEP is investing £30m to support development activity in the Birmingham Curzon area.
McLoughlin said: “We are committed to seeing HS2 delivered and maximising the local economic impact that this major piece of national infrastructure will bring.”
Waheed Nazir, director of planning and regeneration at Birmingham council, added: “The decision to locate the HS2 construction HQ in Birmingham demonstrates the strength of the city centre as a prime office location. As confidence returns to the market this decision will kick-start further investment in the city’s office stock helping to fill the gap in supply and meet the rising demand for high quality office space.”
The announcement demonstrates that HS2 is now “powering forward,” said Higgins. “It is essential that power is devolved from London, to the regions, who must now play a key role in delivering HS2,” he added. “The Birmingham Curzon Regeneration Company is just the kind of locally driven body that will help ensure the successful completion of HS2.”
GM Real Estate advised HS2.
Click below to listen to a podcast interview with HS2 chairman David Higgins, Birmingham council director of planning and regeneration Waheed Nazir, and Greater Birmingham and Solihull LEP chair Andy Street.
