£3m deal secured to deliver new digital hub in Sheffield

Work will soon start on transforming a Grade-II Sheffield building into a innovation hub for the city region’s creative and digital sector.

A £3m funding deal between Sheffield City Council and regeneration company U+I has been completed, which will create a digital incubator to be opened at Castle House, the former Co-op department store at Castlegate.

The refurbishment and fit-out of the new facility at Castle House is expected to complete and ready for occupation in early 2019.

U+I has appointed Kollider Projects as the delivery partner for the new facility, which will offer co-working facilities and a range of business support services.

Richard Upton, deputy CEO of U+I, said: “We are delighted to have completed this deal and look forward to working with our partners to creating an vibrant, collaborative and economically important destination at Castle House.

“Partnerships with local councils when properly constructed can deliver real benefit and value to local communities and the business which work in them. I am convinced the refurbishment of Castle House will be a catalyst for the wider regeneration of Castlegate.”

Nick Morgan of Kollider Projects added: “Our focus is on delivering a home for an already dynamic community, encouraging innovation and stimulating business growth in the city region. We are passionate about building a true destination for Sheffield at Castle House, an engaging space and a community beacon where bright ideas are brought to life and business thrives.”

Councillor Mazher Iqbal, Sheffield City Council’s cabinet member for business and investment, also commented: “We’re delighted to announce U+I and Kollider as the developer and operator of this exciting digital and tech facility. We Sheffielders know that the city is equipped for digital and creative industries and this funding will help it to unlock those skills and develop them for the future.

“It is pleasing that this development will take part in the historic Old Town of the city, redefining it for the future and helping this world-leading and innovate sector to expand and grow.

“Big changes are happening at Castlegate and it is now home to hotels, offices, artists studios and now a digital hub. I’d like to welcome U+I and Kollider and wish them every success.”

Margot James MP, Minister for Digital and the Creative Industries, said: “We are determined to make the UK the best place in the world to start and grow a digital business, and this new tech hub will give Sheffield’s cutting-edge creative and digital businesses a fantastic space to collaborate and innovate.

“We want to see the whole country benefit from the digital economy and our funding will not only boost the city’s thriving tech scene but also provide opportunities for firms right across the Northern Powerhouse.”

Sheffield City Council was granted more than £3m funding by the Department of Culture, Media and Sport (DCMS) in 2015 to establish a new facility providing work space, business incubation and other services for entrepreneurs and SMEs who rely on digital technologies and their applications.

Following a competitive process the bulk of this funding has been awarded to the Castle House project.

Sheffield City Region’s digital tech sector comprises more than 18,000 companies and generates around £1.3bn in sales.