A Canadian pension fund which owns half of Birmingham's Grand Central shopping centre has bought a share in the £500 million Paradise project.
The Canada Pension Plan Investment Board (CPPIB) has taken a 50 per cent holding in the £150 million first phase of the project which will see two new office buildings developed in Chamberlain Square in Birmingham city centre.
This first part of the development comprises the demolition of Central Library (see video below), new public realm works and the pair of new buildings - One and Two Chamberlain Square.
The overall Paradise project covers 1.8 million sq ft and encompasses eight new office buildings, a hotel, public realm and new traffic flow on land currently occupied by Central Library, Adrian Boult Hall and Paradise Circus island.
It is currently jointly owned by Hermes Investment Management and Birmingham City Council.
In January, Bullring co-owner Hammerson bought the Grand Central centre above New Street station for around £335 million and a few weeks later sold 50 per cent of the centre to CPPIB.
Argent, the property group which led the rebirth of Brindleyplace, is also leading the development of Paradise.
Chris Taylor, head of private markets at Hermes Investment Management, said: "The partnership with CPPIB is testament to our well-established relationship and the confidence that we are seeing in Birmingham as a leading business destination.
"The opportunity at Paradise builds on our work with CPPIB at Wellington Place in Leeds and will open the door to a further extension of our JV."
Demolition of Central Library