Pinsent Masons has advised developer Arena Central Developments, a joint venture between Miller Developments and Pro Vinci Asset Management, on the deal to develop new UK headquarters for HSBC.
HSBC will forward purchase the 210,000 sq ft 2 Arena Central in Birmingham, which will be the head office of HSBCs new UK ring-fenced bank serving personal and business customers .
The building will have the capacity to accommodate up to 2,500 people including leadership and managerial roles. It will be forward-purchased on a 250 year lease.
Birmingham is already home to more than 2,500 HSBC employees and around 1,000 head office roles will move from London by early 2018.
Subject to securing planning permission at the end of April, work will start on 2 Arena Central in the summer and will be handed over to HSBC in mid 2017 for occupation from early 2018.
Designed by architect Ken Shuttleworth of Make Architects, the building will be the first in Birmingham to be constructed to LEED Gold accreditation (Leadership in Environmental and Energy Design).
The Pinsent Masons team acting on the deal was led by real estate partners Tom Johnson and Lisa Middleton, supported by Chris Dewes, Lyneth Blackwall, Nigel Blundell, Jonathan Vickers, Pam Bhatti, Martin Damms, Matthew Fox, Ruth Chapman and John Christian.
Mr Johnson, head of Pinsent Masons’ UK development practice, said: “ As well as being one of the most significant office development deals in the centre of Birmingham for several years, the HSBC HQ project is a clear vote of confidence in the city and the region, and underlines the reputation of Birmingham as a world class business centre.
“Looking ahead, the redevelopment of Arena Central will have a transformative effect on the regeneration of Birmingham’s west side and the evolution of Birmingham as the Midlands powerhouse.”
The Arena deal is the second major Birmingham property deal for Pinsent Masons in as many months. In March the firm announced it had advised Persimmon Homes on a £100 million deal that will create hundreds of new homes at the former Selly Oak Hospital site.
HSBC was advised by Eversheds and CBRE and Birmingham City Council was advised by Squire Patton Boggs and GBR Phoenix Beard.