Sphere Group Unveils £350m Plan for Birmingham's Former Rackhams Store

Birmingham developer Sphere Group will unveil a £350m transformation of the former Rackhams department store on Thursday, delivering more than 500 homes and 225,000 sq ft of office space to the landmark city centre site.

Sphere Group, formerly known as Court Collaboration, is acting as development partner for freehold owner Legal & General. The scheme covers the former department store alongside the neighbouring office buildings at One Temple Row and 43 Temple Row.

Gensler has drawn up the mixed-use masterplan. The project will carve out new public spaces and introduce street-level shops, restaurants and cafés.

The proposals mark a scale-back from earlier ambitions. Previous environmental scoping plans explored a larger scheme of up to 650 homes and 380,000 sq ft of offices. The latest version trims the commercial element while keeping the residential target above 500 units.

Thomas Taylor, managing director at Sphere Group, framed the reveal as a moment for public engagement. "We're really excited to show off our plans and discuss them with our passionate Birmingham community. This is urban regeneration defined by high-quality design, attractive new public realm and new commercial spaces," he said.

"The development could provide modern office space, new homes, new retail and improved public spaces, creating around 1,300 jobs and around £350m in Gross Development Value."

The scheme sits within Birmingham City Council's wider Central Heart vision. That plan targets 17 hectares of underused retail and commercial space, aiming to reshape it into a new mixed-use city centre district.

The Rackhams project gives the Central Heart programme one of its most visible test cases to date. If the trimmed commercial component clears planning, the scheme will set a benchmark for how the council converts legacy retail stock into housing and workspace over the coming years.