Top UK investable projects: Paradise Birmingham, West Midlands

Project overview

Paradise Birmingham is a 17-acre office-led regeneration scheme. It redefines the city’s commercial landscape by replacing outdated brutalist architecture and delivering 1.3m sq ft of Grade A office space with 120,000 sq ft of supporting leisure and retail space.

Paradise is also bolstering pedestrian permeability in the city centre, while enhancing the public realm with three new public squares.

The second of three phases is nearing completion. It comprises One Centenary Way, Three Chamberlain Square and The Octagon, a 370-bed build-to-rent scheme which is the world’s highest, purely octagonal building.

The final phase will introduce Congreve Square, which will replace the Copthorne Hotel with three office-led buildings, adding 500,000 sq ft of Grade A workspace.

The opportunity

There is an opportunity to co-invest via debt or equity funding models for Phase 3 in partnership with asset manager Federated Hermes.

Financials

The project has an estimated gross development value of £1.2 billion.

Project sponsor

The scheme is being developed by Paradise Circus Limited Partnership, comprising: MEPC as master developer; Federated Hermes, through BTPS (British Telecom Pension Scheme) as funding partner; and Birmingham City Council as landowner.

Significance

The overall development is expected to generate approximately 12,000 jobs for Birmingham, and has already attracted the likes of Goldman Sachs and PwC, who have moved operations out of London and into Birmingham. Furthermore, the 49-storey Octagon residential tower will provide 370 new homes, further stimulating footfall in the city and supporting growing demand for city centre living.

The pitch

Paradise is a nationally-significant regeneration scheme. The first phases have transformed a historic part of Birmingham city centre, attracted leading corporate, and hospitality/leisure occupiers alike, including Goldman Sachs, Arup, PwC, Dishoom and F1 Arcade, and delivered a skyline-changing residential tower.

Phase 3 represents an opportunity to be part of the scheme’s continued success, delivering further commercial space and public realm improvements.