Chambers sells HQ for £4.75m
Greater Birmingham Chambers of Commerce has sold its Edgbaston headquarters to Mercia Real Estate, a privately-owned real estate and asset management business, for £4.75 million.
The leaders of the oldest and largest business support organisation in the region said the sale would enhance its long-term financial future.
The purchase will mean that GBCC’s base will remain at Chamber of Commerce House on the corner of Harborne Road and Highfield Road.
GBCC, established in 1813, moved to the site in 1960 from the New Street headquarters it had occupied since 1916. The offices were formally opened by the then Paymaster General Lord Hills and a new reception area was opened by Prime Minister John Major in 1996.
The chambers, which have more than 3,000 businesses as members, is today made up of 10 divisional Chambers of Commerce: Birmingham, Burton and District, Cannock Chase, Lichfield and Tamworth, Solihull, Sutton Coldfield, plus the Asian Business Chamber, Future Faces Chamber, Commonwealth Chamber and Transatlantic Chamber.
David Waller, who chairs the chambers' 14-strong board, said: “This move secures the long-term future of the chamber and means that it will continue to occupy its existing offices. The pension fund trustees have agreed to the sale and the deal de-risks the chamber at a crucial time and sets up the organisation for the future.
“It means we can maintain and strengthen the widespread support we have been able to provide for businesses of all types and sizes in Greater Birmingham and beyond for many years, now under the leadership of chief executive Paul Faulkner.
“The chamber has changed massively since it moved into the building in 1960 but has never wavered from its determination to support businesses of all shapes and sizes no matter what the political colours have been nationally or regionally.
“We are delighted to have come to an agreement with MRE. They are already patrons of the chamber and they have exciting plans for the building as it continues to be at the epicentre of business in the region.”
Mr Faulkner said: “The deal we have struck with MRE means the chamber’s future is very bright indeed and it is an exciting development for our staff and members. Our Chamber has already changed and modernised a great deal in recent years, and this transaction will enable us to continue to evolve as a dynamic and innovative organisation that is continually striving to deliver the best possible business support and help our members and the business community as a whole.
“I am delighted that we have come to this agreement with MRE, despite the challenges posed by coronavirus in recent months, and it certainly proves that it is possible to keep business moving in the face of such constraints.
“MRE have drawn up some inspiring plans which include modernising the building as well as constructing new space on the top of the two wings which make up the headquarters. The plan, in due course, is for the chamber to occupy the new additional two floors over the existing seven-storey block, which will provide a stunning view over the ever changing city-scape of Birmingham.”
Steve Allen, president of GBCC, added: “This is really exciting news for the chamber and our members as it not only secures our long-term future but will also provide our brilliant chamber team with a new ultra-modern office from which to work.
“I’d like to congratulate our CEO Paul Faulkner and our chairman David Waller for driving this deal and all the parties involved for bringing this impressive development to fruition.”
Helen Bates, the chamber’s chief financial officer, said: “The Chamber’s legacy pension scheme, dating back to 1950, had a technical provisions deficit at the last valuation of £2.1m and has had a charge on the building since 2007, when the scheme was closed.
“The deal de-risks the cChamber at a crucial time and sets the organisation up for the future.”
Brian Summers, chairman the pension trustees, said: “In 2007 the cChamber agreed with the pension trustees that the fund should take security over the Chamber premises at 75 Harborne Road, Birmingham, to help to secure the fund members’ benefits.
“The pension fund trustees fully support the sale. The resulting special contribution to the fund will significantly benefit the fund's position. The trustees remain grateful for the chamber's committed support to the fund for the future."
