Green light for city’s first speculative development since recession

THE first speculative office building in Sheffield since the recession is set to go ahead.

Following a landmark agreement between developers CTP and Development Securities with Sheffield City Council and the Department for Communities and Local Government, the go ahead has been given to 3 St Paul’s Place, the final part of the pioneering development in the heart of Sheffield.

Work will start on site in late spring.

The 10-storey 3 St Paul’s Place will comprise 80,000 sq ft of prime Grade A office space and completes the award-winning £180m Heart of the City project. Each 8,000 sq ft floor offers office suites from 2,000 sq ft.

CTP is developing 3 St Paul’s Place in conjunction with London-based Development Securities, supported by Sheffield City Council, regeneration agency Creative Sheffield, SCR JESSICA, which was set up to support infrastructure and real estate investment opportunities across the region, and the European Regional Development Fund (ERDF), managed by the Department for Communities and Local Government.

David Topham, director of Manchester-based CTP, said: “The signing of the agreement with Sheffield City Council by ourselves and Development Securities is tremendous news and a great example of a successful partnership between the private and public sectors. It is also the final piece in the multi award-winning Heart of the City jigsaw, which has transformed Sheffield’s city centre.

“Of course there is an element of risk in any speculative development, but we are extremely confident that the quality of 3 St Paul’s Place, combined with its location, will ensure that occupiers for the building are swiftly found. Interest has been exceptionally strong already.

“3 St Paul’s Place will enjoy spectacular views over the renowned Peace Gardens and Millennium Square. It is also close to all the retail and leisure facilities of the city centre, together with the central bus and train stations and a number of car parks, including the new multi-storey Q-Park.

“The overall development has created a new central business district for the city centre and has set a high benchmark as to the quality of the workplace provided, the architecture of the building and surrounding areas,” said Mr Topham.

Coun Julie Dore, Leader of Sheffield City Council said: “This scheme shows just how innovative Sheffield can be. This will be the most sought-after office block in Sheffield, completing the £130m Heart of the City project.

“Accommodating over 700 jobs, we firmly believe that 3 St Paul’s Place will help existing businesses who are crying out for good quality new offices in the heart of the city, as well as potentially attracting new businesses to Sheffield.

“We couldn’t have brought this development forward without the ground-breaking delivery model put in place by Creative Sheffield, the Council’s economic arm; the scheme wouldn’t be happening without major private sector investment, European funding, the JESSICA Investment Fund and the Council being prepared to do what’s necessary to enable the development to proceed”,” said Coun Dore.

St Paul’s Place is a mixed-use scheme which features the 161-bed St Paul’s Mercure hotel; No1 and No 2 office developments occupied by lawyers DLA Piper, RBS, Barclays, Coutts and the Department of Children, Schools and Families; a 330-apartment residential tower block; the famous “Cheesegrater” car park, operated by Q-Park; a casino; and restaurants and cafes including Pizza Express, Piccolinos, Café Nero and Café Rouge.

The marketing agents for 3 St Paul’s Place are the Sheffield office of Knight Frank, together with the Leeds offices of BNP Parabas and DTZ.

Peter Whiteley of Knight Frank said: “3 St Pauls Place will deliver much-needed prime Grade A office space within Sheffield’s city centre core. We are very proud to be part the team on this successful development which has helped regenerate this area within the heart of the city.

“The earlier office phases have proved extremely successful and there is every reason to believe that 3 St Paul’s Place will prove equally attractive to potential occupiers. The facilities close to the new building make it the perfect place to live, work and play,” he added.

Richard Dunhill of BNP Parabas said: “St Paul’s Place is a top quality development within Sheffield’s city core. The Sheffield and Leeds offices of BNP Paribas are very excited at the prospect of being involved in this fabulous piece of Grade A space.’’

Tim Cameron-Jones, Head of DTZ North commented: “The innovative agreement between Sheffield City Council and CTP will facilitate the first speculative scheme in the region for many years. This will give the city a competitive advantage in securing new occupiers who will be attracted to this prestigious scheme. “

Adam Cockroft, Director of Office Agency for Yorkshire added: “DTZ clients acquired both buildings 1 and 2 at St Paul’s Place and we have great confidence that this final phase will also enjoy success. Occupiers are targeting the highest quality, best located schemes in the City which will put Number 3 St Paul’s Place at the top of their wish list.”