WATCH: Progress ploughs ahead on Birmingham city centre transformation

Over recent weeks construction has taken a major step forward following the arrival of two huge tower cranes, and One Chamberlain Square is now growing at pace, while foundation works for Two Chamberlain Square are well underway.

The Paradise team is now working up detailed design ahead of submitting a planning application for One Centenary Way, providing 250,000 to 300,000 sq ft of office space and a 250 bedroom luxury hotel, which together form part of Phase Two of the development.

Chris Taylor, head of private markets at Hermes Investment Management, said: "Paradise is a key part of both Birmingham and the region's growth in meeting the shortage of high quality accommodation for a wide range of businesses looking to establish and expand their presence in the city.

"Hermes Investment Management's significant investment reflects not only our confidence in the landmark scheme, but also the wider commercial marketplace in Birmingham, which is undergoing a tangible renaissance – we look forward to watching the first phase being constructed while plans get underway for the next phase."

Rob Groves, regional director at developer Argent, said: "It is great to see such progress being made on the development as the reality of what we have been working toward for nearly a decade comes to fruition.

"The next 12 months will be very exciting, with One and Two Chamberlain Square actually coming out of the ground and major enhancements being made to the public realm.

"We have also been working on detailed designs for Phase Two as we look to submit our planning application later this year – a further sign of the continued investment in the project and the city."

The first phase of the Paradise project, which will completely transform the city centre, includes 355,000 sq ft of office space – 90,000 sq ft of which has been let to PwC – aimed at meeting demand from the growing Business, Professional and Financial Services (BPFS) sector.

Completion of One Chamberlain Square is expected in 2018, along with improvements to the public areas around the square, whilst the second speculative office building, Two Chamberlain Square, will complete in 2019.

New drone footage of the Paradise development is being displayed on the Midlands UK stand at MIPIM this week, to an audience of international investors, developers and property experts.

The Paradise redevelopment is being brought forward through Paradise Circus Limited Partnership (PCLP), a private-public joint venture with Birmingham City Council.

The private sector funding is being managed through a joint venture between Hermes Investment Management and Canada Pension Plan Investment Board (CPPIB). Argent is the development manager.