Project is for Shanghai-based developer PGC Capital led by chief executive Denise Li
ISG has beaten Interserve to build a new residential scheme in the centre of Birmingham for the fledgling UK property development arm of Chinese investment bank PGC Capital.
Located close to Hammerson鈥檚 Bullring shopping centre, the scheme, known as Lunar Rise, is the second development in the UK by the Shanghai-based firm.
PGC Capital has already delivered a 77 luxury apartment residential scheme in the city called Jewel Court.
Designed by Corstorphine + Wright, Lunar Rise will house 517 apartments spread across a 25-storey tower and a pair of 10-storey blocks as well as ground floor commercial space.
Speaking to 黑洞社区, PGC Capital UK president Francis Cole said he expected the scheme, valued at approximately 拢135m, to break ground at the beginning of June.
The wider project team includes Gleeds as the QS and project manager, Liverpool-based Alan Johnston Partners as the structural engineer and Manchester-based Futureserv as the M&E engineer.
PGC Capital is also 鈥渢entatively鈥� looking at developing up to three more residential-led schemes in Birmingham, Cole said.
In addition, plans are in process for two major schemes in Manchester city centre, one of which will help the developer branch out into more mixed-use projects.
The developer, which has been mainly focused on regional schemes, is also now turning its sights on the capital.
鈥淚鈥檝e got four or five schemes we鈥檙e looking at [in London] and we鈥檙e trying to bring one forward and we鈥檙e in very close working relationship with Barking & Dagenham Council,鈥� Cole added.
The developer usually adopts a two-stage bidding process on its schemes with only two contractors tendering for each project. Cole said he expects this procurement tactic to continue as it ensures the contractors put in their best teams forward and achieves a 鈥渞obust price鈥�.
鈥淲e鈥檙e quite diligent [when it comes to contractors]. I鈥檝e operated in the UK for 26 years now and have seen the peaks and troughs and I鈥檝e seen where there鈥檚 been over commitment by contractors, so we鈥檙e hugely cautious about who we allow to tender,鈥� Cole said.
He added he 鈥渄efinitely鈥� expected PGC Capital to work with Chinese main contractors on UK schemes in the future.
Cole insisted the developer is also here for the long-term, despite the possible impact of Brexit.
鈥淎s a business we are economically minded that where there鈥檚 volatility there鈥檚 opportunity. That鈥檚 absolutely reinforced in the UK whereby we have a very stable legal system and a stable real estate market when you look at it over a 20-year period.
鈥淲e鈥檝e got huge confidence in doing business in the UK [鈥 There will no doubt be some sort of contraction and you can see a bit of a slowdown in construction at the moment where people are hedging their bets [..] but no one absolutely knows and if you鈥檝e got sites bought at the right price and the appraisals correct that banks can support you can deliver you can continue in your business with a level of surety.
鈥淲e want to continue to strengthen our relationships in the UK where we work closely with various bodies which are involved in strategic regeneration in the UK, such as Be First in Barking & Dagenham. We are also speaking with the chairman of the Peabody Trust who is also the chairman of the Northern Powerhouse, Lord Kerslake.鈥�
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