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IKEA in talks over Birmingham's Icknield Port


The property development arm of retailer IKEA, LandProp, is in "advanced negotiations" with the joint owners of the 52 acre Icknield Port Loop development site to potentially unlock the Birmingham development, according to industry magazine Egi.

Birmingham City Council is considering an outline planning application for the site, which includes proposals for 1,150 new homes and retail,  and employment space, it said.

The site was earmarked as the "largest redevelopment site" in Birmingham in the city's 2005 development framework, but plans to take the development forward in 2008 stalled as a result of the credit crunch.

The Icknield Port Loop site is currently owned by British Waterways, the Homes and Communities Agency (HCA) and Birmingham City Council and has capacity for up to 11,000 homes and 75,000 square feet of commercial space.

A source said that the council was in talks with LandProp about potentially partnering on the Greater Icknield Port area, which is a longer-term regeneration of more than 150 acres that is expected to be more commercially-focused, EGi reported.

"[This] is just the beginning of the expansion in the UK. Sites are being looked at all over the country," said a source close to LandProp, according to EGi. "The group has money to spend and that is putting it in a strong position when it comes to finding opportunities."

LandProp's first UK property deal is a 26 acre mixed-use project in Stratford, just south of the Olympic Stadium. The "Strand East" development includes plans for 1,200 homes and up to 500,000 square feet of commercial space.

The group is also said to be in talks to buy Quay Street from ITV in Manchester. The site is the set of Coronation Street, which is due to move to Salford later this year, according to an EGi report. The 13 acre site includes plans for up to 1.2 million square feet of offices and residential development.

To boost its UK development agenda, LandProp has set aside at least £500m for its UK expansion.

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