A revised planning application has been submitted by Nikal for its Exchange Square development in Birmingham city centre.

Nikal want to change the currently application which is for a commercially-driven mixed-use scheme with 600,000 sq ft of Grade A offices, ground floor retail and further space earmarked for a 200-bed hotel or 150,000 sqft residential element into 700,000 sqft of residential in 1,000 high-quality units across five buildings.

John Moffat, Development Director at Nikal, said: "We are expecting a shortfall of some 80,000 homes in Birmingham over the coming years and felt that rather than being commercially-drive, Exchange Square would provide the greatest benefit as a residential location.

"Our current planning consent already allows for 230 residential units however our hope is to develop a place that is a miniature neighbourhood in its own right. To that end, we are currently exploring the integration of a number of features that would help to create a sense of community within the development."

Nikal intends to operate the new residential accommodation as a Private Rental Sector (PRS) scheme, with ownership and management retained by the developer. It is hoped that all 1,000 units could be delivered simultaneously rather than in phases, should the right funding package be secured.

Moffat said: "In a location that is situated equidistant from the city's commercial and retail quarters and with the City Park on our doorstep, we believe that Exchange Square is an outstanding location for a residential development, particularly of the aspirational nature and high quality that we envisage."

If the planning application is approved, Nikal intends to begin work on the site in the first half of 2015.