Sheffield-headquartered property developer HBD has sold its half-stake in Pennine Property Partnership and Acre Mill in a £20m deal, reflecting a yield of 3.56%.
Pennine Property Partnership (PPP) is a project that began in 2013, with HBD appointed as development partner to Calderdale and Huddersfield NHS Foundation Trust. It later won MIPIM Public Private Partnership of the Year.
The decade-long partnership saw the redevelopment of a listed mill building into a 56,000 sq ft outpatient clinic, and the transformation of a former hospital site into 226 new family homes and a convenience store.
As the partnership approached its natural end, the Trust wanted to retain its stake in the partnership as opposed to selling the main income producing asset. In order for the Trust to retain its interest, HBD devised an alternative structure for the sale, divesting its own share to a long-term fund – despite the additional complexity of the deal and a lower return, the partnership remained a priority for HBD.
Tom Wheldon, director and head of region at HBD, said: “The regeneration of the St Luke’s site is a great example of what can be achieved via public private partnership and a long-term approach to regeneration. We’re pleased to have been able to support the Trust in delivering the scheme, providing the local community with new healthcare facilities and delivering much-needed new homes.”
