Colmore Square gets greener after £66m loan
One of Birmingham’s biggest office schemes is enhancing its environmental credentials, after deciding to switch to 100% renewable energy sources.
The move follows a £66m refinancing deal between Two Colmore Square’s owners, Nurton Developments, and Lloyds Bank Commercial Banking, under its Green Lending Initiative.
The 160,000 sq ft scheme has been one of the city’s most sustainable buildings for almost a decade. Nurton Developments took on the dilapidated 1960s block and transformed it inside and out with the adjacent Cannon House to create a development with a combined 300,000 sq ft.
The complex and lengthy £10m+ refurbishment received the rare accolade of BREEAM ‘Excellent’ status and subsequently won awards from both Property Week and the British Council of Offices.
The restored stone facades and panoramic glazing garnered further praise, and made Two Colmore Square a landmark long before the current renaissance of Colmore Row began.
The seven-storey building counts BPP, Shoosmiths, the Insolvency Service and the Legal Services Commission among its occupiers.
Nurton’s finance director, Paul Bradshaw, says the developer’s asset management strategy will now see further improvements; including a switch to renewable power sources, the introduction of the latest energy-efficiency measures and the ongoing installation of smart meters for every tenant.
“Two Colmore Square set the standard in the city’s office market almost a decade ago following its major refurbishment,” he said.
“Now, with the support of Lloyds Bank, our long-term banking partner, we’re further enhancing its status as one of Birmingham’s greenest buildings, which is critical at a time of increasing competition, and when forward-thinking occupiers are looking to move into more sustainable space.”
Richard Round, the relationship director for Lloyds Bank Commercial Real Estate, was equally pleased to conclude the deal, one of the largest completed under its Green Lending programme.
“Our Green Lending Initiative is there to help asset owners and developers in pursuit of environmental excellence by providing an interest margin discount of up to 20bps,” he said.
“This deal is a great example of how we can support ongoing collaboration between a landlord and its tenants to improve the carbon footprint of buildings, and will help ensure that Two Colmore Square stays at the cutting-edge of performance for many more years to come.”