Government-occupied building in Sheffield seeks £3.87m investment sale

Foundry House in the heart of Sheffield’s Riverside Exchange Quarter is now being sold with a price tag of more than £3.87m.

Lambert Smith Hampton (LSH), the national commercial property consultancy, has been instructed to sell Foundry House after securing a 20,000 sq ft letting to the Home Office in one of the city’s biggest office deals of 2018.

The Home Office, which is responsible for the safety and security of UK citizens, has designated Sheffield as the national processing centre for UK Visas and Immigration.

Foundry House will operate as a training centre for border control operations.

The four-storey building is now fully let to the Government, with the remaining 6,000 sq ft occupied by the Health and Safety Executive (HSE), the body responsible for the encouragement, regulation and enforcement of workplace health, safety and welfare.

Foundry House provides regional HSE operations and support for the Sheffield and South Yorkshire areas.

LSH is seeking offers of more than £3.87m for Foundry House, reflecting a net initial yield of 9% after costs.

Tom Burlaga, associate director at LSH’s Sheffield office, said: “We are delighted to secure a 20,000 sq ft letting to the Home Office. The average deal size in the city centre is below 5,000 sq ft so this is a standout letting in the market.

“It’s also a great deal for Sheffield as the Government has made a commitment to establishing an immigration facility in Sheffield which will bring hundreds of jobs to the city. With the proposed West Bar Square development, the Riverside Quarter is set for an exciting period of improvement.”

Luke Symonds, associate director – capital markets at LSH, commented: “Now that Foundry House is fully-let, we are excited to launch an investment sale. We anticipate plenty of interest as there is good potential for market growth.

“There is strong demand from occupiers for this type of stock but limited availability in the city centre. Many offices have been converted to private and student residential accommodation so there is not a great deal of quality secondary stock.”