The West Midlands has seen a strong first half of the year, putting the region in a good position to weather any potential volatility as a result of the UK’s decision to leave the EU.
The comments, made by Ian Stringer, Senior Regional Director at real estate adviser, Bilfinger GVA were a part of his keynote speech at the West Midlands Forum for Growth, the official launch of the West Midlands Combined Authority (WMCA).
The one-day conference, sponsored by Bilfinger GVA, was delivered in partnership with Movers and Shakers, the WMCA and UK Trade & Investment and brought together public and private sector leaders to discuss the key challenges – and opportunities – to growth in the region, using the newly devolved powers of the Combined Authority.
Ian said: “If we look at the West Midlands in contrast to the national picture, things were looking more encouraging if not quite exciting. In terms of monetary volumes, the first half of the year has been very fruitful in terms of large transactions in Real Estate.
“The region is performing really strongly, especially within the national context, with overseas investment into the West Midlands continuing to rise. The uncertainty created by Brexit may well influence the market, but with London continuing to overheat and the ‘Devolution Agenda’ bringing the regions back into fashion, there are some fantastic opportunities for us to exploit.”
And, in even more encouraging news, Ian showed that 50% of investment activity – when reviewing deals between £50m and £100m – were taking place in locations other than Central Birmingham. For example, Godiva place in Coventry and Birch Coppice in Tamworth, which were both purchased in March 2016 for £74.4m and £81m respectively.
Referencing the recent Bilfinger GVA report, ‘Who Owns Central Birmingham?’ Ian went further, showing that 31% of the city core is now owned by overseas investors – representing a steady increase in overseas investment in the city.
However, the positive tone was tempered following the result of the historic EU referendum, with former Deputy Prime Minister Lord Heseltine warning of a ‘dark cloud’ hanging over the country.
Although Lord Heseltine argued that devolution was the ‘culmination of his lifetime’s work’, Brexit represented a threat to its future.
Mark Rogers, Chief Executive of Birmingham City Council was more optimistic, noting that although there was a need to readjust, the region had to hold its course and stick to its principles.
Indeed, Martin Reeves – the Chief Executive of the WMCA – asserted that the logic for devolution hadn’t changed, with people still wanting decisions that affect them made at the local level, by their local representatives.
But it was also recognised that the main challenge for the Combined Authority will be exploiting the opportunities whilst successfully navigating the potential pitfalls. Referring to extracts from another Bilfinger GVA report, ‘The Midlands Engine and the Knowledge Economy’, Ian Stringer showed the assembled audience that some of the opportunities were already well in focus.
The Greater Birmingham and Solihull Local Enterprise Partnership, for example, has highlighted Life Sciences, Environmental, Creative, Digital and Advanced Manufacturing as key growth sectors. The Coventry and Warwickshire LEP and the Black County LEP have highlighted similar opportunities, all of which will feed into the fledgling Combined Authority.
Ian Stringer, continued: “We were really pleased and excited to be key sponsors of this milestone event, which officially launched the West Midlands Combined Authority.
“The West Midlands Combined Authority will be key to attracting investment and maximising these for the benefit of all citizens across the region, and Bilfinger GVA will be one of its biggest supporters in the months and years ahead.”
The one day conference analysed a complex range of issues, with panel sessions discussing topics as varied as: ‘Transforming Areas, Creating Homes and Building Communities’ and ‘Investing in the West Midlands.’