A huge new apartment block is set to be built on a car park in Birmingham city centre after one of the world's largest property investment funds backed the proposals. US-based PGIM Real Estate has partnered with Birmingham developer Court Collaboration on the project which would see the council's Paradise Circus Car Park in Brindley Drive demolished to make way for around 550 apartments to rent.
Details of the final designs are still being worked up ahead of a public consultation and the submission of a planning application but a preliminary report lodged with the council in June suggested it could contain two blocks of 15 and 45 storeys respectively.
The development, designed by architecture practice CallisonRTKL, could also contain commercial units, amenity space for residents, landscaping and public realm, according to that report.
The application site sits very close to the £1.2 billion Paradise project and directly opposite the site of the new 49-storey Octagon apartment tower which is being built as part of that scheme. Court Collaboration currently has seven active developments across the West Midlands containing around 4,500 residential units, either on site or at planning stages.
Its other projects in Birmingham include New Garden Square, on the Calthorpe Estate in Edgbaston, and the proposed 51-storey One Eastside apartment tower in Jennens Road.
Managing director Alex Neale said: "Having now exchanged on this exciting scheme, we look forward to bringing our plans forward for local engagement prior to submitting a planning application.
"The site is in a prime location for build-to-rent and our high-quality development will complement the neighbouring City Centre Gardens, Paradise redevelopment and Centenary Square. Watch this space for more in the coming weeks and months.
"As a business, we are thrilled to start our joint venture with the second biggest real estate fund in the world and just as the Commonwealth Games are set to begin in our beloved city. We hope this deal is the start of many."
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PGIM Real Estate is headquartered in New Jersey and has offices across the world, including a UK base in London. It is the real estate business of global investment manager PGIM, formerly known as Prudential Investment Management, and has around £173 billion in gross assets under management and administration.
Full details of the funding deal between PGIM Real Estate and Court Collaboration have not been disclosed.
Head of European debt Andrew Macland said: "This financing loan demonstrates our continued focus on real estate assets in liquid markets such as the UK. This focus is driven by the structural trends we identify in residential, a sector seeing a strong generational shift in living needs, with rising demand for premium housing.
"Having engaged with Court Collaboration for nearly two years, we are confident in their experience and network of strong local developer partnerships to be able to deliver this scheme and look forward to working together."
Birmingham City Council leader Cllr Ian Ward added: "This is another huge vote of confidence in Birmingham and I'm delighted that PGIM Real Estate is joining forces with Court Collaboration to deliver this exciting development. This is a golden decade of opportunity for Birmingham and the timing of the news of this fantastic partnership, as we countdown the final few days to the Commonwealth Games, could not be better."
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