3 St Paul’s Place, the flagship office building in the heart of Sheffield, has been sold for £24 million to London-based investment company M&G Real Estate.
Developers U+I and CTP, who built the 78,000 sq ft Grade A speculatively, hailed the sale “as a massive vote of confidence in the city of Sheffield”.
“We are tremendously proud of what we have achieved at 3 St Paul’s Place. It is the first speculative office building to be developed in Sheffield since the recession and now boasts a number of high-quality occupiers,” said David Topham, Director of Manchester-based developers CTP.
“The sale completes the St Paul’s Place masterplan, which has been a primary regeneration initiative for Sheffield city centre and a crucial part of Sheffield’s £185 million Heart of the City project. It puts Sheffield firmly on the map as a business destination.
“The remarkable success of St Paul’s Place, and 3 St Paul’s Place in particular, has transformed and ignited the city’s office market.
“When we embarked on the overall development, Grade A rents were about £15 per sq ft. They are now a record-breaking £24.50 per sq ft.
“We have developed a high-quality investment class product for the city attracting Standard Life, Canada Life, GE Capital and M&G to Sheffield. This has revitalised not just the office market in the Sheffield city centre, but the retail offer too.
“This city centre transformation is critical to Sheffield’s future, acting as a catalyst for further regeneration and underlining the city’s exciting future as a leading UK city.
“Sheffield now has a balanced and productive economy, straddling many sectors including advanced manufacturing, health and wellbeing and education, alongside a wide range of creative and professional services.”
High-profile occupiers at 3 St Paul’s Place now include civil engineers Arup, architects BDP and HLM, leading Swedish bank Handelsbanken and lawyers Freeths.
Henrie Westlake, investment partner at the Leeds office of global property consultancy Knight Frank, who advised CTP and U+I, commented: “The sale of 3 St Paul’s Place reinforces the building’s position within the market, as one of the most prestigious developments within the Sheffield City Region.
The construction of the 10-storey 3 St Paul’s Place went ahead following a landmark agreement between CTP and U+I, the specialist regeneration developer and investor, with Sheffield City Council and the Department for Communities and Local Government. Further finance was provided by Barclays and SCR Jessica.