Spaces completes 76,000 sq ft Brum office move

By Paul Norman - Wednesday, January 10, 2018 12:10

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IWG's co-working arm Spaces has confirmed it is taking all 76,000 sq ft of offices at AG Dundedin's Crossway on Great Charles Street in Birmingham in a story first revealed by CoStar News in October of last year.

Spaces said Birmingham hub will offer co-working opportunities as well as a "variety of services in order to meet the needs of today’s entrepreneurial businesses". These include serviced offices, day offices, bookable meeting rooms and virtual office facilities.

Founded in 2006, the company is home to businesses in several locations across the UK, including London, Liverpool, Brighton and Glasgow, with plans to announce more locations in the coming months.

Outside of the UK, Spaces’ global footprint spans more than 25 countries, including the US, Israel, Norway, Japan and Spain.

Richard Morris, UK CEO Spaces, said: “Spaces’ emphasis on networking and community allows users to meet others who share a belief in the power of collaborative working.

“Birmingham is an important business location that connects the North and South which makes it the perfect fit for our expansion plans. Our new hub will provide a flexible environment for businesses to grow in a key, strategic business location.”

CoStar News revealed in October that IWG, formerly Regus, was in talks for the move as part of two lettings in the city totalling 100,000 sq ft as it responds in part to the number of banking, outsourcing and infrastructure clients seeking a flexible solution on the back of major inward investment moves to the city by groups such as HSBC and HS2.

Spaces is leasing the space on a circa 10-year lease with an option to buy at the end of the term. Rents at the building are around £22 per sq ft.

The building is one of six on Great Charles Street that were bought as part of a portfolio by AG Dunedin, a joint venture between Angelo Gordon and Dunedin Property Asset Management, in 2015.

After buying the portfolio, AG Dunedin undertook a rolling programme of improvement works. Lombard House, which is almost fully let, and Charles House have both been fully refurbished with upgraded receptions, public areas and office suites.

The Crossway building – formerly Civic House – on the corner of Great Charles Street and Summer Row - underwent a significant redevelopment.

The Great Charles Street Estate is situated on an island site in Birmingham city centre framed by Newhall Street, Lionel Street, Summer Row and fronting Great Charles Street Queensway, a main arterial route connecting the site to the A38 and national motorway network.

It lies close to New Street and Snow Hill railway stations and adjacent to the Paradise development which will open new pedestrian routes to the city centre in summer 2017.

Savills, GVA and LSH advise AG Dunedin.

Separately CoStar News revealed in October that Regus was in talks to take offices at Legal & General and Ediston Real Estate’s makeover of the Lewis Building, one of Birmingham’s most well-known landmark buildings. In September a £20m refurbishment of the former department store on Bull Street completed delivering circa 113,000 sq ft of offices across seven floors.

Regus has now exchanged to take 33,293 sqft of offices on part of the ground floor and the first and second floor.

CBRE and GVA are the appointed leasing agents. JLL is advising Regus.

pnorman@costar.co.uk

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