Funding deal gives BAM go-ahead for Three Snowhill

Developer Ballymore has secured funding for its £200m Three Snowhill development in Birmingham.

Above: Three Snowhill

Three Snowhill is a 420,000 sq ft office development in Birmingham city centre and is billed as the UK’s largest speculative city centre office scheme outside of London. It is an enterprise zone site and within Birmingham’s Snowhill Masterplan.

BAM Construction, named preferred contractor back in June 2015, can now start work and is expected to complete its £90m contract by the end of 2018.

M&G Real Estate has now agreed to fund the project. The deal follows M&G Real Estate’s acquisition of Two Snowhill in 2014.

Ballymore chief executive Sean Mulryan said: “Ballymore is delighted to announce a start on the third and final phase of our Snowhill scheme. Working with the City, our funding partner, M&G Real Estate, and our main contractor, BAM, we will deliver a landmark building and the final element of what is one of the largest and most prestigious commercial developments in central Birmingham.”

He continued: “Ballymore committed to Birmingham and the Snowhill scheme over 10 years ago. That long term commitment has resulted in the successful transformation of Snowhill into a new and thriving business district – already home to some of Birmingham’s largest office occupiers, including KPMG, Barclays, Gowling WLG (formerly Wragge & Co) and the HS2 construction headquarters.

“Three Snowhill will enable us to continue building and letting large floorplate workspace of the highest quality and complete the Snowhill Estate.”

M&G Real Estate chief executive Alex Jeffrey added: “Demand from both domestic and international businesses to secure high quality office space in Birmingham has significantly increased, and this is set to rise further with planned infrastructure improvements such as HS2’s Phase One confirmed to start in 2017. While occupier demand continues to outstrip supply and push prime rents upwards, Three Snowhill will benefit from low vacancy rates and support our strategy to provide our investors with long-term income-driven growth.”

The concept architect for Three Snowhill is Sidell Gibson, project architect is Weedons. WSP is the structural engineer, Arup for buidling services and Gleeds is project surveyor.