Three Snow Hill wins M&G funding

Three Snow Hill wins M&G funding

Developer Ballymore has secured funding for its £200m Three Snowhill project from property investors M&G Real Estate.

BAM Construction, which was enlisted as contractor for the development in June 2015, are now able to start work, with its £90m contract estimated to be completed by the end of 2018.

The 420,000 sq ft office project will create around 450 construction jobs, as well as support the treasury’s vision for making the Midlands a powerhouse for growth.

Ballymore’s chief executive, Sean Mulryan, says:“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.” 

Three Snowhill is a major development within Birmingham’s Snowhill Masterplan, which proposes to maximise the potential of the area and provide a sustainable supply of high-quality office space.

Once completed it will contain 385,000 sq ft of office space and 35,000 sq ft of retail and leisure space, and house approximately 4,000 workers.

The deal follows M&G Real Estate’s acquisition of Two Snowhill in 2014 and forms the next stage of Birmingham’s wider Snowhill masterplan, which has transformed the northern end of Colmore Row to become the prime location for offices in the city centre.

Alex Jeffrey, chief executive, M&G Real Estate, adds: “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.”