The ongoing transformation of Birmingham's Jewellery Quarter has been boosted with approval for a new £125 million neighbourhood.

Developers Galliard Homes and Apsley House Capital are working to redevelop the four-acre AE Harris industrial site into St Paul's Quarter, creating over 500 jobs in the process.

St Paul's Quarter will comprise 305 apartments – including lofts and duplexes – and circa 100,000 sq ft of commercial space, including affordable business and retail space, across 20 buildings, as well as new public realm. It will be bounded by Newhall Street, Graham Street, Brook Street, James Street and Northwood Street.

As part of the work, a new pedestrian street will stretch from Newhall Street into the heart of the Jewellery Quarter, improving access from the city centre. Northwood Street, currently partially closed to the public, will also be opened to pedestrians for the first time in more than 20 years. A new public square will be incorporated, in the centre of the scheme, surrounded by commercial and leisure space at ground level.

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The scheme will also see two Grade II listed buildings restored to their former glory - 109 Northwood Street and 199 Newhall Street. A further two derelict buildings, 123 and 128 Northwood Street, will also be salvaged and transformed into new homes.

Stephen Conway, executive chairman of Galliard Homes, said: "The Jewellery Quarter's historic buildings give the area its special character. Galliard has a track record of restoring listed buildings across London and we are looking forward to bringing this experience to Birmingham. 123 and 128 Northwood Street have a familiar typology to the Jewellery Quarter, with street frontages concealing rear factory wings. These two buildings reinforce the grain of the area, running north-south. It's therefore right that we respect their heritage and preserve them, despite their lack of listed status."

Robin Norstrom, a director at Apsley House Capital, added: "This development will be the largest within the Jewellery Quarter Conservation Area. We have invested more than two years in bringing this highly anticipated scheme forward, working with the local community and with the city's planning officers to create a new gateway to the Jewellery Quarter and an animated hub – not only a place to live and work but also a destination in itself. The scheme will introduce more than a kilometre of street frontages to explore, with the majority of the public spaces being car free. As well as new homes, the scheme’s ground floor commercial space will provide opportunities for up-and-coming independent businesses, whether that's local heroes or brands new to the city. We are also keen to support jewellers and artists by providing affordable retail and business space."

St Paul's Quarter is expected to take four years to complete.

(CM/JG)