Birmingham’s £600 million Snow Hill Masterplan may prove profitable to local real estate investors
Earlier this year, a survey by PWC and the Urban Land Institute into real estate investment across European cities revealed that Birmingham had claimed sixth place amongst prime European locations for
, jumping 14 spots from its 2014 placing of 20th to beat London, Lisbon and Amsterdam. Since then, real estate investment in the city has continued, with interest coming from both international and national and local investors.
One such example of local investment is Real Estate Investors (REI) who have just announced the purchase of a 24,500 square foot building on Great Charles Street in a deal worth £1.85 million. The acquisition comes just days after the announcement of the city council of plans to pedestrianise Great Charles Street as part of the recently proposed Snow Hill Master Plan.
The £600 million Snow Hill Masterplan is ambitious, as it is intended to make Birmingham an international financial centre on a scale to rival London. This is to be achieved by creating more than 2.2 million square feet of new office space, 10,000 new jobs as well as 4000 new homes.
Mr. Paul Bassi, chief executive of REI said that the acquisition represented an excellent addition to their city centre portfolio, particularly because of its location in the centre of the planned regeneration area.
It also follows a couple of significant sales and acquisitions by the firm in 2014. Last July REI sold its 13,000 square foot head office for £4.35 million. Subsequent to that, the firm acquired a historic building at 33 Bennets Hill for £1.575 million, which was formerly the original branch of Midlands Bank.
Currently Birmingham ranks second only to London in terms of the amount of financial services firms that are based there. Should the Snow Hill Masterplan succeed in attracting large volumes of new business in this area, small purchases such as the one just made by REI could prove to be massively profitable in years to come.