Key Derby development site sold to London investor
A gateway site into Derby has been sold to a London investor.
The 3-acre site off Traffic Street and Siddals Road is widely regarded as one of Derby’s key regeneration opportunities and has been bought by London-based real estate investment manager, Newcore Capital Management.
The sale to Newcore – which specialises in social infrastructure, storage and accommodation strategies across the UK – sees it take control of one of the large scale development sites in Derby city centre which was the previously proposed location for the 400,000 sq ft One Derby Office scheme.
The site was sold by Speeds which has a long relationship with Derby, having formerly operated two car dealerships from the location. Managing director, Martin Speed said: “After the sale of our car dealership business, we were delighted to retain our property interests in Derby. The sale of the property was a strategic decision but we are keen to see our long standing family relationship with the city continue.
“Our property management and development businesses are already strongly involved in activity in other parts of the city and it’s likely that proceeds from this sale will be invested in other real estate opportunities locally.”
The site is currently multi-tenanted and includes a large public car park, trampoline venue and a vehicle repair centre. The site previously had planning permission for five office blocks, a hotel and retail units on the site. However, the scheme was shelved as a result of the recession.
The deal was brokered by Stephen Salloway, managing director of Salloway Property Consultants. He said: ““We were aware from the start that the site would generate significant interest from both developers and investors, due to its long term redevelopment potential and attractive existing income stream of over £460,000 per annum.
“We were impressed with the level and quality of the interest and whilst we had serious enquiries from a range of developers, particularly from the residential private rented sector, it was ultimately an unconditional investor bid that made most sense to recommend to my client.”
The disposal on behalf of Speeds was handled by commercial property lawyer Graham Green, senior partner at Fraser Brown Solicitors.