Helical Retail, a joint venture between Helical Bar plc and Solihull-based Oswin Developments Ltd (the 'JV'), has exchanged conditional contracts to purchase a 13-acre site at Reddings Lane in Tyseley, Birmingham from Eaton Electric Ltd.
Subject to the receipt of planning permission, the JV intends to develop a 71,600-ft² (approx. 6,650-m²) Asda supermarket and 70,000-ft² retail park.
The Helical Retail site forms part of a wider 30-acre regeneration project, which also includes an industrial scheme being developed by Mucklow PLC and a five acre residential development. All the developers have agreed to fund the provision of a 'link road' that will connect Warwick Road with Olton Boulevard and, in turn, act as a catalyst to bring forward the development of the industrial scheme and the residential development.
Helical and Mucklow will be submitting a joint planning application for the combined 30 acres over the next two months, following a public consultation on the proposals.
The total cost of the development is expected to be approximately £50 million (approx. 57 million), of which Helical Retail's share is £30 million.
Michael Slade, Chief Executive of Helical Bar, said: "Partnership's are a key strategic driver for Helical and this acquisition plays strongly to the joint venture's skills whilst enabling us to play an important role in the regeneration of this area of Birmingham. We look forward to working again with Oswin and the other regeneration partners to move this exciting mixed used development forward over the coming months.
Jonathan Cox of Oswin Developments said: "This proposed £60-million regeneration of the Eaton site will be of great long-term benefit to the local community. As well as creating a significant number of jobs, the local community will benefit from the redevelopment of five acres of currently redundant land for residential purposes, helping to address the housing shortage in the region.
"We are now looking forward to engaging with local people and businesses through the imminent consultation process and hope to get our proposals before the planning committee early next year."