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JLL advises UK Government on 240,000 sq ft deal
Birmingham, 21 September 2017 - Birmingham’s Arena Central development has completed a letting for 240,000 sq ft to the Government, in a development to be funded by Legal & General (L&G), representing the largest pre-let to take place in the city in a decade.
The UK Government, advised by JLL, has committed to take the full 3 Arena Central building to house a number of government services including the Midlands regional hub for HM Revenue and Customs (HMRC).
The Government has committed to a 25 year lease for the 14 floor building which has planning consent in place, and which will accommodate some 3,500 civil servants.
Kelvin Craddock, JLL director of Tenant Representation, said: "Arena Central was selected after a comprehensive review of options, focussing on a broad range of criteria including cost efficiency to deliver savings for the government estate. The appeal of a self-contained building and the environment being created were big positives in selection of Arena Central. JLL is immensely proud to have advised on this landmark deal for Birmingham."
3 Arena Central will be situated on a plot at the heart of the 9 acre city centre regeneration site, with demolition and site clearance work due to commence imminently and the building handed over for fit out in spring 2020.
3 Arena Central will have efficient floorplates of 18,299 sq ft set around an offset core and has been designed to meet BREEAM Excellent.
Arena Central is being delivered by ACDL, a joint venture led by Miller Developments.
Andrew Sutherland, Miller Developments, said: “We are naturally delighted that 3 Arena Central has been selected by the Government Property Unit to house its requirement.“Following so closely behind the selection of 1 Centenary Square by HSBC as the home of its retail bank, this truly demonstrates the inward investment appeal of both Birmingham as a city and Arena Central specifically as a destination.”
Legal & General has already invested £12 billion in UK infrastructure, direct investments and urban regeneration projects, and is committed to modernising Britain’s great cities as it aims to invest £15 billion. It has forward funded this development on behalf of its annuity fund. Adam Kerr, Head of Annuity Transactions, LGIM Real Assets, said: “There is currently more capital committed to infrastructure projects in Birmingham than any other European city. We believe that this latest investment will make a meaningful impact to the continued regeneration of this area, helping to create social and economic growth. At Legal & General we have a commitment to improving our built environment, investing in cities across the UK to bring about urban centres that are fit for purpose and that are better places to live and work.”
Neil Rami, chief executive of the West Midlands Growth Company, said: “The Arena Central deal is significant. A public sector hub of this scale will have a positive impact on investor confidence in the region’s commercial property market. We envisage further opportunities as the government repurposes its estate and non-departmental bodies assess the benefits of relocating out of London.”
Councillor Ian Ward, Interim Leader of Birmingham City Council, said: “This investment by the Government in Birmingham City Centre is a major vote of confidence in the city’s continued regeneration. It reflects the importance of our strategic location, improved connectivity and extensive skills base.”
Arena Central is a 9 acre development site in Birmingham City Centre, bounded by Centenary Square, Bridge Street, Holliday Street and Suffolk Street Queensway.
Adjacent to the Library of Birmingham and framed by Centenary Square, Holliday Street, Bridge Street and Suffolk Street Queensway, Arena Central is a key commercial development for Birmingham.
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