More Chinese Money Will Come Says Shanghai-Based PGC As 25-Storey Tower Approved
Chinese investors will pour more money into Birmingham residential, according to the chief executive of Shanghai-based developer PGC Capital.
Chief executive Denise Li made the prediction after PGC won planning permission for its 517-unit Digbeth Lunar Rise apartment scheme, as the Southside resi boom continues.
"Chinese investment in Birmingham hasn’t hit a ceiling," Li told Bisnow. "Given the continuing shortage of housing in the city and its prime location in the heart of the U.K., it continues to be a tremendous investment opportunity. Birmingham offers a strong infrastructure proposition and has unequivocal public sector support — two major factors which provide comfort to Chinese investors. In addition, the return on investment is higher here so we continue to anticipate significant returns in the next five years."
However, Li warned that Chinese investors' appetite for commercial real estate in the Midlands was still limited. "Chinese investors have tended to avoid commercial offices, warehouses and retail because the return on investment isn’t as easily understood and they are seen as more speculative investments than residential," she said.
PGC, which is headquartered in Shanghai but which has an office in Birmingham, intends to demolish the Renault site at 75-80 High St. and replace it with three residential blocks including one up to 25 storeys, with a total of 263 one-bedroom, 252 two-bedroom and two three-bedroom apartments.
Work on the Lunar Rise development is expected to start this summer. Architects Corstorphine + Wright designed the scheme, with PGC Capital carrying out the role of development manager and client through the process.