£14m secured for redevelopment of listed buildings

Eyewitness Works in Sheffield city centre has taken a major step forward as developer CAPITAL&CENTRIC has secured £14m worth of funding.

The South Yorkshire Pension Fund, advised by CBRE’s Investment Advisory team, part of CBRE Capital Advisors, is putting £10.7m into the project, while Homes England is providing £3.5m.

The Grade II listed Eyewitness Works and Ceylon Works buildings on Milton Street are currently being restored alongside the construction of a six-storey building on the site of the former Brunswick Hotel.

The development will include 97 loft apartments and town houses, along with a 900 sq ft café-bar.

It is part of a new neighbourhood being pioneered by CAPITAL&CENTRIC, called Mesters’ Village.

Earlier this year the developer revealed plans for how the area in the Devonshire Quarter could be transformed over the next five to 10 years with over 2,500 homes, workshops, café bars, delis, a school and pocket parks.

The South Yorkshire Pension Fund appointed CBRE in 2019 to manage the fund and originate and advise on all investments.

Tim Heatley, co-founder of CAPITAL&CENTRIC, said: “When the pandemic hit there were some questions over whether city centre living has a future.

“We really believe it has and as lockdown eases I think we’ll see more and more people wanting to get back into the mix of things and experience everything the city has to offer.

“Eyewitness and Ceylon Works are a really important slice of Sheffield’s history so it was mega important for us to keep their original charm, but also bring a modern, design-led feel to the apartments. We think they’re going to look awesome.”

George Graham, director from South Yorkshire Pension Fund, said: “We strongly believe investing in our place can deliver new and different sources of return to help us pay pensions.

“The scheme being delivered by Capital & Centric shows we can do this and help bring landmark buildings in the centre of Sheffield back into use providing much needed homes.”

Henry Randolph, director from CBRE Investment Advisory, said: “This is a wonderful example of how a local authority pension fund can enable regeneration in their own geography and make a good return, while remaining prudent from a risk perspective.

“Capital & Centric are bringing forward an attractive and unique residential scheme which will be one of the best developments in Sheffield.”

Peter Freeman, chair of Homes England, added: “The regeneration of the Eyewitness Works as a mixed-use development is a great step forward in re-thinking city centre living in Sheffield.

“We’re pleased to be able to support the scheme through our Home Building Fund and look forward to working with Capital & Centric and senior lender, South Yorkshire Pension Fund to deliver much needed, high quality and attractive housing.”

Eyewitness Works has been a feature of Sheffield for decades. For the past 150 years it was home to Taylor’s Eyewitness Ltd, a Sheffield-based company that provided the nation with cutlery.

This is CAPITAL&CENTRIC’s first self-build project and with construction now well underway the £25m project is due for completion in autumn 2022.