CPPIB takes 50% share of €194m Birmingham project

Canadian pension fund Canada Pension Plan Investment Board (CPPIB) said on Monday it is committing to a 50% share in the £150 mln (€194 mln) first phase of the £1 bn Paradise Birmingham development.

The 1.8-million sq ft (167,000 m2) project is one of the largest development projects in the UK, and is currently jointly owned by Hermes Investment Management and Birmingham City Council.

The operation will represent an extension of Hermes Investment Management and CPPIB’s regional JV at Wellington Place in Leeds.

Argent is the developer of the mixed-use development which will include offices, shops, cafes, restaurants and a hotel across 10 buildings. The first phase of the project, which started in late 2015, includes the development on a speculative basis of two new office buildings with 350,000 sq ft. The assets, which were granted planning permission in autumn last year, will be ready for occupation in late 2018.

'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,' said Chris Taylor, head of private markets at Hermes Investment Management.

Andrea Orlandi, managing director and head of real estate investments Europe at CPPIB, added: 'The Paradise Birmingham development is a high-quality real estate investment in an important region in the UK, and fits well with our long-term investment approach.'