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Who's Who in Construction 2004


Beyond the Bullring

 

Birmingham reached a key milestone in its renaissance when the first green shoots of the revitalised Eastside began to appear.

The announcement that Masshouse - a joint venture between developers David McLean and Nikal - is about to commence is heralded as great news for the region's construction industry now that the main Bullring development is finished.

Tony Milner, RICS construction spokesman for the West Midlands and partner at Gardiner & Theobold, agrees that construction companies in the West Midlands will benefit from the opportunities created by Eastside, but warns that there may be some barriers to overcome before the Eastside vision can be fully realised.

"Without a doubt, creating 1.2 million sq ft of mixed-use space at Masshouse is critical to the long-term success of Eastside and the impact it will have on the region's construction industry is considerable," says Mr Milner. "Many aspects of Eastside are now starting to gain momentum across a number of sectors."

For example, a planning application has been lodged for the new Library of Birmingham, a selected developer has been named for City Park Gate, the Royal College of Organists' proposal for Curzon Street Station is in for planning, and discussions about City Park are ongoing.

There has been progress on the education side too, with proposals for UCE to provide a number of facilities in the Eastside area, as well as the planned expansion of Aston Science Park. Matthew Boulton College has now started work at a site on Jennens Road.

A sizeable chunk of the work on the former Castle Cement Depot site is also likely to start by mid-April. Curzon Gateway, as it is now known, is the proposed location for new student housing and commercial residential development.

Other developments in the area include a residential and office scheme along the Digbeth branch canal and another major residential scheme is also planned around Typhoo Basin, south of the West Coast Mainline.

Mr Milner surveys the scene and says: "In short, things are really beginning to take shape. There has been some clear, joined up thinking for plans north of the nain line particularly in the areas around Millennium Point and the proposed learning zone for example.

"It is when you take a step back and view the whole of Eastside that some of the gaps begin to appear. South of the main line is where the media quarter plans are being developed and there are definitely pockets of opportunity here."

As Mr Milner points out, although the total area of Eastside is 420 acres, only 110 acres have so far been planned in any detail.

"The majority of available space yet to be earmarked for specific development is located in an area of Digbeth with many competing ownerships," he says.

"Putting plans for this area together is not going to be easy - it is far more difficult to see an overall plan for the southern sector of the Eastside quarter.

"A further problem is the fact that the highways and transport strategy for the area has not yet been finalised and this is proving to be a barrier to some of the proposed developments in the whole of Eastside.

"Simply linking the Middle Ring Road and Masshouse areas is not a solution to the problem. This issue needs to be addressed - and quickly.

"The nature of Eastside and the way it has been divided up means that there are a whole series of opportunities and the region's construction industry could benefit as a result. With such a wealth of opportunity, someone needs to be brave enough to go in and get on with it, instead of just talking around the possibilities.

"All of the projects currently in the pipeline that I have discussed are close to getting off the ground, but it's all about actually making them happen.

"Realistically, there could be a danger of stalling the whole project and if so a very grand regeneration strategy, which is helping to drive the renaissance of Birmingham forward, could falter.

"Our track record over the last ten years shows that we have a can-do approach to delivering ambitious aims as is evident in the regeneration of the west side of the city.

"There are reasons for celebration and significant progress has been made with the Eastside development - we must keep this momentum going by being brave and ensuring that the vision becomes a reality."

An equally long-term view of the area is taken by Jamie Philips, office expert at commercial property consultancy BK.

He acknowledges that some critics have started to scrutinise the pace and success of the regeneration of the Eastside and have even called developments like Millennium Point a bit of a white elephant.

Despite this, he and some other agents are pointing to the area as an investment opportunity - one which in the medium term could provide the solution to many of the city core space problems.

Mr Philips sums up his views by saying that we mustn't lose sight of the bigger picture and miss the point.

"If you step back and look at the size of Eastside it is easy to understand why the council's plans for regeneration are phased over ten years," says Mr Philips.

"In any other city, this would be seen as hugely ambitious at that. There are certain obstacles which have to be overcome in the development of such a major site and it is sometimes hard for the market to keep the faith while waiting for these things to be done.

"While the legacy of the concrete collar is being broken down and the Masshouse site is being completed it is only logical that Millennium Point is somewhat stranded and therefore isn't fulfilling all of its potential.

"It is a victim of being an early pioneer in a long term process. But looking forward, once these hurdles are overcome Millennium Point and the rest of Eastside are going to have massive pulling power for tourists, residents and businesses as well as students."

At the moment, occupiers can pick up office space in the Eastside area for around £10 per sq ft - which Mr Philips describes as very good value for the quality of product on offer.

"It is mainly issues over location and potential isolation which are keeping these prices low, so once the regeneration of Eastside begins to pick up pace we can expect to see these figures at least doubling to around £19-20 per sqft," he says.

"It makes space over there a great investment opportunity - if you can step back, see the bigger picture and have patience."

Like Mr Milner, he points out that the regeneration programme is being driven by Birmingham City Council, which has a very good 16-year track record in being proven right.

"I don't believe that they will allow these sites to fail, so if you can bide your time Eastside is the right place to be," says Mr Philips.

"Early indicators also point to the site's future potential - Aston University is expanding, and Matthew Bolton College is relocating there. Various professional practices are keeping a keen eye on the area with a view to relocating."

Mr Phillips predcist up to two years of growing pain followed by some major lettings as key professional service firms unite multi site teams under one roof.

Mis parting message - occupiers shouldn't perceive Eastside as the student zone and shy away.

"Although Eastside is themed as the learning and education quarter, the council has recognised that we need to avoid the risk of creating enclaves like those formed in places like Milton Keynes where single use was so exclusively pushed that it forced out all natural balance," he explains.

"Even in the Jewellery Quarter some have argued that residential space has probably dominated too much.

"So in future development areas like Eastside I think we will see careful council control to ensure genuine mixed use alongside a vibrant student hub."

 

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