2 Cornwall Street | 20 fl | Unknown Height | Competition Stage - Page 3

***woodhousen*** · April 25th, 2012, 02:28 PM

a great shame really but alas its the same old story... ballymore taken on way much more than they can chew, especially outside their london comfort zone....

be we are where we are, and i think this is one site where we just have to watch this space!

JayPeeDee · April 25th, 2012, 05:06 PM

Sounds as though it's likely to slowly crumble away rather than be developed then...

Steldemetriou · April 25th, 2012, 05:08 PM

The full article is more positive, Nurton are in the picture.

Quote:

West Register buy marks Ballymore’s Birmingham exit
West Register, the Royal Bank of Scotland’s internal property company, has bought the long leasehold interest on 2 Cornwall Street in Birmingham from Ballymore.

West Register is understood to have paid £7m for the 88,235 sq ft vacant office, beating rival bids from Bruntwood, Frogmore, Moorfield
and Commercial Estates Group.

The sale marks Ballymore’s exit from its last Birmingham asset. West Register will now decide whether to redevelop or refurbish the building.

Ballymore bought the property in 2006 for £26.4m. The company borrowed more than £20m from RBS to fund the deal. The bank is likely to take a writedown on its debt, but by buying the building through West Register, it has the potential to make a profit if the value rises in future.

It is thought West Register has begun early-stage discussions with Nurton Developments. Birmingham-based Nurton has an option over the freehold of the property, which is owned by Cregoe Colmore Estates.

Nurton’s development director, Rupert Young, says the company holds “no special position as a future developer of the scheme”.

However, should the new owner wish to demolish the building or carry out substantial redevelopment, it would have to purchase the freehold from Nurton or reach a partnership agreement with the developer to bring forward work on the scheme.

GBR Phoenix Beard advised Ballymore on the sale.

Ecological · April 25th, 2012, 05:32 PM

It's all a very complicated situation. The Holding company of W.R lend the money to Ballymore to buy then probably gets written in the contract that they have first option of purchase. West Register buy it back with an apparent shortfall with the current economic climate (but really don't because Ballymore still owe the money to W.R Holding company RBS with interest, Nurton develop. W.R (RBS) get a significant %.

Bet the accountants are loving this shit.

Steldemetriou · April 25th, 2012, 05:34 PM

Quote:

Originally Posted by Ecological

It's all a very complicated situation. The Holding company of W.R lend the money to Ballymore to buy then probably gets written in the contract that they have first option of purchase. West Register buy it back with an apparent shortfall with the current economic climate (but really don't because Ballymore still owe the money to W.R Holding company RBS with interest, Nurton develop. W.R (RBS) get a significant %.

Bet the accountants are loving this shit.

Trust me it can get much more complicated!

Ecological · April 25th, 2012, 05:42 PM

I have no doubt.

Spread · May 28th, 2012, 11:41 AM

More detail for EGI, looks more positive to my reading:

RBS eyes Brum office options

Royal Bank of Scotland has appointed CBRE and GVA as joint letting agents and development consultants on a key site in Birmingham's historic office core.

The bank's in-house property arm, West Register, is considering options to either redevelop or refurbish the 111,000 sq ft office at 2 Cornwall Street.

It bought the long leasehold to the building from Ballymore last month for around £7m, beating rival bids from Moorfield, Bruntwood and Commercial Estates Group.

The appointment was made last week and CBRE and GVA will now carry out a detailed analysis of the building and potential development options.

Birmingham-based developer Nurton Developments has an option over the building's freehold, which is owned by Cregoe Colmore Estates.

West Register is in talks with Nurton, which is understood to want a redevelopment of the site. If West Register decides to demolish the building, the firm would have to acquire the freehold option from Nurton.

Ballymore paid £26.5m - a yield 5.8% - for the building in 2006 and borrowed more than £20m from RBS to do so.

Accountant KPMG leased the whole of the building until August 2010. It then relocated to Ballymore's 1 Snow Hill development in the city.

April 25th, 2012, 02:28 PM	#41
*woodhousen* Moderator Join Date: Sep 2002 Location: Leeds/Birmingham, UK Posts: 10,866 Likes (Received): 7	a great shame really but alas its the same old story... ballymore taken on way much more than they can chew, especially outside their london comfort zone.... be we are where we are, and i think this is one site where we just have to watch this space! __________________ Simply BIRMINGHAM

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April 25th, 2012, 05:06 PM	#42
JayPeeDee Registered User Join Date: Jan 2007 Posts: 2,785 Likes (Received): 64	Sounds as though it's likely to slowly crumble away rather than be developed then...

April 25th, 2012, 05:32 PM	#44
Ecological BANNED Join Date: Mar 2009 Posts: 3,519 Likes (Received): 9	It's all a very complicated situation. The Holding company of W.R lend the money to Ballymore to buy then probably gets written in the contract that they have first option of purchase. West Register buy it back with an apparent shortfall with the current economic climate (but really don't because Ballymore still owe the money to W.R Holding company RBS with interest, Nurton develop. W.R (RBS) get a significant %. Bet the accountants are loving this shit.

April 25th, 2012, 05:42 PM	#46
Ecological BANNED Join Date: Mar 2009 Posts: 3,519 Likes (Received): 9	I have no doubt.

May 28th, 2012, 11:41 AM	#47
Spread Brummie & Proud Join Date: Aug 2004 Location: Birmingham Posts: 1,662 Likes (Received): 34	More detail for EGI, looks more positive to my reading: RBS eyes Brum office options Royal Bank of Scotland has appointed CBRE and GVA as joint letting agents and development consultants on a key site in Birmingham's historic office core. The bank's in-house property arm, West Register, is considering options to either redevelop or refurbish the 111,000 sq ft office at 2 Cornwall Street. It bought the long leasehold to the building from Ballymore last month for around £7m, beating rival bids from Moorfield, Bruntwood and Commercial Estates Group. The appointment was made last week and CBRE and GVA will now carry out a detailed analysis of the building and potential development options. Birmingham-based developer Nurton Developments has an option over the building's freehold, which is owned by Cregoe Colmore Estates. West Register is in talks with Nurton, which is understood to want a redevelopment of the site. If West Register decides to demolish the building, the firm would have to acquire the freehold option from Nurton. Ballymore paid £26.5m - a yield 5.8% - for the building in 2006 and borrowed more than £20m from RBS to do so. Accountant KPMG leased the whole of the building until August 2010. It then relocated to Ballymore's 1 Snow Hill development in the city.