American property giant Hines has confirmed it will fund the second phase of the Snowhill scheme in Birmingham, ending one of the worst kept secrets in the city’s commercial property sector.
As reported in the Birmingham Post last month, the company which recently acquired most of Brindleyplace for £200m will join forces with Irish developer Ballymore to build out the development which has sat idle for almost two years after its previous funders fell foul of the credit crunch.
The first phase of the scheme, designed by Sidell Gibson, is almost fully let to KPMG and Barclays, while the second phase will contain 305,000 sq ft of office space, more than half of which has already been pre-let to Wragge & Co. There will also be 9,000 sq ft of retail space.
Hines UK Director Anthony Leonard said: “We are looking forward to working with Ballymore as joint developers to complete Two Snowhill.
"We are optimistic about additional leasing prospects, as Two Snowhill will be of the highest quality and will be the first new office building to be delivered in central Birmingham for more than three years.”
Ballymore’s Snowhill project director Richard Probert added: “Ballymore Group is delighted to have been able to reach an agreement with a partner that will enable us to deliver on our commitments.
"This is a great building, and the re-start on site next month will hopefully be a springboard both for the rest of the scheme and for a renaissance in the wider Birmingham office market.”
Debt funding for Two Snowhill is being provided by the London branch of Deutsche Hypo. Colliers International in Birmingham advised Hines while Savills advised Ballymore.