A former data centre in Birmingham is set to be demolished to make way for a £55m city centre housing development.

Developers have applied to Birmingham City Council for permission to knock down Cedar House – situated at the junction of Holiday Street and Communication Row.

Subject to permission being granted then work could begin next month.

The housing scheme is being funded by a consortium of Far East investors. The investors, from Hong Kong and Macau, agreed to the development following a trade mission to China last year by city council leader John Clancy.

The new scheme will see the construction of at least 214 new apartments.

The council agreed to sell off the data centre last year with the proceeds going towards the cost of a regeneration scheme in Sutton Coldfield.

Last year, the local authority opted to purchase the run-down Red Rose shopping centre in the town in a move which was thought likely to spearhead ongoing regeneration.

The shopping centre is currently home to Sutton Coldfield Library – which the city council has earmarked for closure – a multi-story car park and a range of shops.

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