Staycity to make £16m Newhall Square move
Serviced apartment operator Staycity is set to open up to 190 properties in Newhall Square in what is thought to be Birmingham's biggest aparthotel.
The pre-letting was secured by RO St Bernard's, which holds planning consent for 247 apartments on the site fronting Newhall Street, Charlotte Street and a canal.
Dublin-based Staycity will open up to 190 apartments on the site – which is included within Birmingham's enterprise zone - in addition to its existing 78 at Birmingham's Arcadian Centre, Hurst Street.
The developer will submit a revised planning application for the £16m aparthotel in April this year, with construction commencing in autumn 2012. The building is set for completion in late 2013.
Staycity, which is backed by the investment vehicle Irelandia of the Ryanair family, has agreed a 30-year lease for the development.
The company currently operates more than 1,000 serviced apartments in Dublin, London, Paris, Amsterdam, Edinburgh, Manchester, Birmingham and Liverpool. It said the expansion into Birmingham was one of several key moves it would take within Europe over the next few years.
Chris Bond, chief executive of ROSB, said: "We are delighted Staycity has chosen Newhall Square. We began negotiations before the enterprise zone was announced but have no doubt the inclusion of the site in the EZ helped clinch the deal and will help attract other occupiers to the site.
"In addition the new UCB campus opposite, which will serve 9,000 students when complete, will strengthen the location further and we have interest from a number of other hotel operators including a four-star chain which would complement the Staycity and existing Travelodge operations well. We also have interest from a museum in the former Whitmore Warehouse."
Newhall Square was the site of the former Birmingham Science Museum. Phase one is complete and includes a 100-bed Travelodge; 10,856 sq ft of new build office let to NSPCC and MADE; and 6,028 sq ft of offices in a fully refurbished Grade II-listed building, let to Ormiston Academies Trust.
