An additional £12.24 million has been approved by the West Midlands Combined Authority (WMCA) to unlock a 'strategically important' housing development.
The money will be used to unlock the Coventry City Centre South scheme, and help transform outdated areas of the city, including Bull Yard, Shelton Square, City Arcade, and Hertford Street.
It brings the WMCA's total funding for City Centre South to £113 million - the biggest investment the combined authority has made to date into a single regeneration scheme. Coventry City Council is contributing £32 million.
The development, which covers 6.3 hectares of land within the city centre, includes 1,575 new homes. Of the 1,575 homes, at least 20% will be classified as affordable housing.
New retail and leisure spaces, a community health centre and potential for a hotel with 150 rooms in the second phase also make up the regeneration plans.
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The project, considered a strategically important housing scheme, will start in 2024 and complete in stages, with the first homes expected to be occupied from 2027.
The first phase completion is expected to be 2031.
Developers The Hill Group and Shearer Property Group are working in partnership with Coventry City Council and the WMCA as the developers for the regeneration project.
City Centre South has long been an aspiration of Coventry City Council with the project seen as a ‘strategic priority’ for the WMCA. The project was first conceived in 2015, with the development receiving planning approval from Coventry City Council in January 2022. A further detailed planning consent is anticipated by Spring 2024.
The additional £12.24 million is needed due to increased costs resulting from the revised Government Building Regulations and Building Safety Act.
The project has previously benefited from a commitment to provide £98.75 million from the WMCA, with £21 million drawn to date which has been used to acquire existing properties, undertake initial demolition work, and fund planning costs.
The WMCA has already invested £39.4 million in the regeneration of Coventry railway station and £51.2 million into Friargate, one of the largest mixed-use developments in the Midlands.
Andy Street, Mayor of the West Midlands and Chair of the WMCA, said: "This is an exciting time for Coventry as this brownfield redevelopment represents a landmark investment and significant regeneration opportunity - the likes of which this city has not seen for decades.
"The City Centre South scheme is proof that the Deeper Devolution Deal - agreed with Government in March 2023 - is delivering results on the ground by empowering us with the autonomy to align with the local needs of Coventry residents with new apartments and office spaces.
"It's great to see a vibrant new district come to life in this historic part of the city and I'm looking forward to visiting it once completed."
