Wind of Change in the Midlands

The upheaval and rationalisation in the commercial property market, as well as the economy at large, has had its effect in the Midlands. For example, the wealth management arm of the Anglo Irish Bank is seeking a buyer for its 18,859 sq.metres office at 1 Colmore Square, Birmingham, for £90 million, a yield of 5.75%, the same price it paid the developer Richardson Barberry in 2004, a year after the property was completed. The fact is that the Irish investors and financial institutions, like others in many countries, are under pressure. Some investors are also taking profits in the upswing in the market.

Another example is that the private Irish company Signature Capital is seeking £23.6 million for Direct Line House, 10-15 Livery Street. Some property companies have gone bust, such as a number of Junared companies where Deloitte is the administrator. Deloitte’s Joint Administrators Matt Cowlishaw and Dominic Wong have completed the sale of the partially completed scheme on the site of the former Birmingham Mint at Hockley to Raybone Developments. This mixed use development is to have 192 residential units and 4,738 sq.metres of commercial space. Construction stopped in September 2007 just as the UK was moving into a tougher economic climate.

The picture is, however, far from being totally negative. New deals are going ahead, such as Standard Life investments, on behalf of the South Yorkshire Pensions Authority, forward funding a 210 bedroom Travelodge at Birmingham Wholesale Market, a regeneration area. In this case, it is on the site of the former UPS parcel depot next to the Bullring Shopping Centre and is part of a £45 million mixed use scheme by Gallan Developments. The hotel will be completed next year. Meanwhile, ASDA has launched the first phase of it £100 million investment in Birmingham by considering a large store on Barnes Hill as part of a programme that will include supermarkets and mixed use developments in the city.

The Midlands Commercial Property Register

The Midlands Commercial Property Register is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Offices Space, Serviced Offices and Commercial Property in the Midlands . You can also find the latest commercial property news for the Midlands.