The international business of Federated Hermes on behalf of BT Pension Scheme (BTPS) and Canada Pension Plan Investment Board (CPP Investments) have expanded their existing joint-venture for the new mixed-use project, One Centenary Way at Paradise, Birmingham.
CPP Investments will commit approximately £56 million.
This transaction follows CPP Investments and Federated Hermes’ joint-venture funding of the first phase of Paradise, Birmingham which included the development of One and Two Chamberlain Square.
The joint venture will fund the development of One Centenary Way, a 13-storey mixed-use development. The site will deliver 286,000 square feet of office space in addition to ground floor retail and other public spaces. Completion is expected for Q1 2023.
Chris Taylor, CEO of Real Estate at the international business of Federated Hermes and Chairman of MEPC, said: “This deal is a vote of confidence in the city of Birmingham and Paradise specifically. We have worked closely with CPP Investments on the delivery of the first phase of the project and are thrilled that they are investing in One Centenary Way, which will further add to Paradise’s credentials as a leading business destination in the U.K. Paradise is a landmark development for the people of Birmingham, and we look forward to continuing our ongoing work with all of our partners.”
Tom Jackson, Managing Director, Head of U.K. Real Estate, CPP Investments, said: “We are delighted to extend our successful partnership with Federated Hermes through this investment in One Centenary Way. The project is very well positioned to support the growth of Birmingham as a modern and expanding centre in the U.K. and deliver on the increasing demand from both local and international corporates who are looking for high-quality office space within the city. Our partnership with Federated Hermes, and the existing joint venture investments we have together in Birmingham, Leeds, Oxford and London, deliver strong results to help us support the CPP’s contributors and beneficiaries and form part of our wider commitment to continued investments in the U.K.”
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 by the international business of Federated Hermes.
Upon completion of all phases, and at almost 2 million square feet, Paradise Birmingham will deliver up to ten new flagship buildings offering offices, shops, bars, cafés, restaurants, a high-quality hotel and a 49-storey residential tower. At 17 acres of the city centre, Paradise Birmingham forms a landmark destination. Arup, as announced in August 2021, has committed to One Centenary Way, taking 68,000 square feet over three floors.
