Sheffield city centre mixed-use investment hits the market for £41m

A mixed-use commercial development in Sheffield city centre has been brought to the market with a price tag of £41m.

Hartshead Square, which covers almost 300,000 sq ft and is fully let, is being launched to the market by Greenridge Investment Management.

The current passing rent from the asset is just under £3m per annum.

Bik Bhuptani, Greenridge director, said: “With NCP recently secured on a long-term lease, The Department of Work and Pensions openly stating that they wish to remain at the property and significant on-going investment and development into Sheffield, this is an asset that still has huge potential for growth.

“An acquisition at this level, based on indicative debt terms, would produce an attractive cash on cash return in excess of 10% pa.”

Greenridge Investment Management is being advised by the Leeds office of Knight Frank.

Rebecca Farnsworth, director of the Leeds office of Knight Frank, added: “In a market short of opportunities, Hartshead Square presents an attractive Sharia compliant investment with exceptionally secure income, the majority of which benefits from RPI linked increases. Sheffield is an exciting and evolving city to invest in.

“Sheffield is experiencing unprecedented change with £1.3bn to be invested in the region. With major global companies such as McLaren and Boeing announcing new purpose built facilities in the region, Sheffield is being firmly placed on the radar of international investors.

“The immediate vicinity of Hartshead Square is being upgraded with a number of redevelopments including residential, student residential, hotel and the creation of a tech hub, increasing the vibrancy and diversity of the area.”