City centre office deal will see £10m investment
SHEFFIELD’S Derwent House has been acquired on behalf of an institutional investor set to invest £10m in the city.
Clayton Investment Management acquired the building in St Paul’s on Arundel Gate on behalf of the investors.
The building is a 65,000 sq ft site which was formerly occupied by Sheffield City Council. The investors will refurbish the site to provide Grade A accommodation.
Rob Darrington, partner at Commercial Property Partners said: “We are delighted to see institutional investment in Sheffield, which is great news for the city, and the local economy.
“Derwent House is an excellent office building located in a prime location of the City Centre, offering a host of local amenities, and excellent accessibility and transport links. The regular shaped, large open plan floor plates offer occupiers some of the best efficiencies of floor space per member of staff in the city.”
Duncan O’Neill from Claymore said: “The 65,000 sq ft office, and the adjacent Howden House, were the first buildings to be constructed as part of the Heart of the City redevelopment, after the demolition of the Town Hall’s Extension nicknamed ‘the Egg Box’.
“Since then, this location has become the true heart of the city centre in terms of both professional services and central retail.
“The Sheffield office market has shown a real occupier resurgence over the past two years which, together with supply erosion and alternative use, has led to significant undersupply of good quality office space and rising rents”.
Guy Cooke, director at BNP Paribas said “We are delighted to be working with Claymore on this project. Derwent House will benefit a significant refurbishment to offer some of the very best offices available in Sheffield, located at the Heart of The City.”
Derwent House is already home to established companies such as Bluestone Credit Managers, Withers & Rodgers LLP and RSI Ltd.
CPP and BNP Paribas are instructed to market the remaining 40,000 sq ft at a quoting rent of £17.50 per sq ft.
