One of Sheffield City Centre’s most prominent development opportunities has been launched to market by CBRE’s UK Development Advisory team, acting on behalf of Sheffield City Council (SCC).

The Barker’s Pool Building, a c.200,000 sq ft former department store, forms a significant element of the council’s £470m Heart of the City regeneration scheme and proposals are being sought by June 2022 for the redevelopment of the strategically located property. 

Originally opened in 1962 as a department store with integrated car park, the property freehold is now owned by SCC who acquired the lease from John Lewis in January 2022. Sitting across 1.25 acres, the five-storey building can be sustainably redeveloped or repurposed for a wide range of uses, subject to planning approval. 

Holding a prime position alongside the core central streets of Fargate, The Moor and Division Street, the building offers a pivotal location benefitting from nearby landmarks including Sheffield City’s Town Hall and the award-winning Peace Gardens, as well as many food, retail and entertainment destinations.  

The property is also at the heart of one of the UK’s largest urban regeneration schemes, the 1.5m sq ft Heart of the City which represents a multi-million pound investment into Sheffield City Centre and which will provide active cultural, leisure, retail, residential and office uses to three sides of the property. 

Since acquiring The Barker’s Pool Building in January 2022, SCC has been busy with securing the building and commissioning various surveys. Works to remove asbestos and strip out redundant plant and machinery are currently out to tender and will commence in the next few months, with anticipated completion in Spring 2023. 

CBRE is openly marketing the property in a two-stage process, seeking expressions of interest by the end of June, with the second stage starting at the end of the summer once initial expressions of interest have been assessed and discussed with bidders. SCC is seeking proposals that add to the vibrancy and attraction of the widest possible number of visitors and local people into the city centre. Proposals must be of very high quality to enhance what SCC is achieving across the rest of the Heart of the City project and wider city centre.

Proposals will be judged on economic, social and environmental benefits rather than purely financial, but will need to be commercially deliverable.

Alex Andrews, CBRE’s UK Development Advisory Team, said: “The Barker’s Pool Building presents an exceptional opportunity for a developer to bring forward a creative solution for this prominent building, delivering a sustainable, environmentally friendly scheme, which in turn will capitalise on the growth and development already being delivered across Sheffield City Centre. The building’s location at the core of the Heart of the City scheme will ensure its long-term prominence and we are looking forward to receiving proposals and discussing with prospective developers.”

Kate Martin, executive director at Sheffield City Council, said: “We know how important this property is to the people of Sheffield and this is a once-in-a-generation opportunity to reshape a key city centre location. The decision on how the property and location is reimagined and its future use will be carefully considered.

“Although removing the existing building is an option, we are keen to ensure we examine all the options on the table, so we can make a fully informed decision. We plan to make the most of this rare opportunity and develop something truly special for Sheffield. 

“As part of this process, we are inviting imaginative and deliverable proposals for either refurbishment or redevelopment of the property and are open to ideas around its future use. We look forward to receiving submissions of outstanding quality that will genuinely add to the vibrancy of the city centre and attract the widest possible number of Sheffield residents and visitors to the city.”

Clearbell UK Strategic Trust (CST), a trust advised by Clearbell Capital, has made a £9m acquisition at Doncaster Leisure Park. The trust has bought 39,603 sq ft at Doncaster Leisure Park from an institutional investor. The site comprises a VUE cinema, and two restaurant units let to Nando’s and Pizza Express. It is located adjacent to the recently developed Herten Triangle which includes TGI Fridays, Taco Bell and Burger King and the Doncaster Racecourse. The acquisition aims to take advantage of rebounding leisure and hospitality footfall following the lifting of pandemic restrictions. Rob Cole, investment manager at Clearbell Capital LLP, said: “UK property continues to bounce back strongly following the pandemic. Occupier demand for leisure in strategic locations is growing, whilst yields remain attractive with relatively few leisure opportunities trading.”

A 9,740 sq ft office building at Capitol Park Leeds has hit the market. Yorkshire property development and investment company Sterling Capitol is currently completing the comprehensive refurbishment of 1 Sterling Court. The building, which was formerly the headquarters of Real Radio, stands at the front of Capitol Park East by Junction 28 of the M62. Paul Beckett, head of development at Sterling Capitol, said: “This is a rare opportunity to lease a splendid self-contained contemporary building in such a prominent location. We are already experiencing a good deal of interest in 1 Sterling Court as the Leeds out-of-town office market remains remarkably buoyant. “Capitol Park Leeds is one of the brightest success stories in the Yorkshire business parks sector and we are very proud of what we have achieved here. We have recently concluded a significant letting to Create Fertility and negotiated a new 10-year lease to Ideal Boilers in buildings very close to 1 Sterling Court, underlining the attraction of the park. “1 Sterling Court has been fully refurbished to the very highest specification to provide distinctive and contemporary offices. It would make the ideal HQ building for an expanding Yorkshire firm. Alternatively, 3,000 sq ft floorplates are available.” Elizabeth Ridler, partner with global property consultancy Knight Frank in Leeds, who is marketing 1 Sterling Court, said: “1 Sterling Court occupies the most fabulous position at the front of Capitol Park East, with great signage opportunities, overlooking the A653 road into Leeds and next to the M62. It also boasts 48 on-site secure parking places with EV charging points. “The demand for out-of-town offices remains very strong, with the recent Leeds Office Agents Forum (LOAF) figures for the first three months of this year revealing that a total of 105,434 sq ft of office space across 31 deals was transacted in Leeds’s out-of-town market. We anticipate further rental growth as new Grade A buildings like 1 Sterling Court are completed and businesses put their ESG requirements at the core of their real estate strategies. “The high standard of the refurbishment reflects the quality of the building itself, which now features VRF air conditioning; raised access floors; new suspended ceilings with LED lighting; excellent natural lighting and new WC and shower facilities.” Richard Thornton, director specialising in office agency with JLL in Leeds, who are marketing 1 Sterling Court with Knight Frank, said: “There is a healthy appetite for well-located and attractive properties like 1 Sterling Court. “As we emerge from the global pandemic, there are encouraging signs in the Leeds office market with general levels of enquiries and viewings on the up, with companies focusing on the quality of their workspace. I Sterling Court ticks all the boxes.” Will Russell-Smith, chief trading officer of Groupe Atlantic, the parent company of Ideal Boilers, said: “We are excited to renew our lease on our Leeds training facility with Sterling Capitol. Its location just off the M62 and close to the M1 junction ensures we continue to be able to provide easily accessible training and forms part of a wider vision to provide hands-on skills to our installer base. “The Leeds training centre will continue to offer both domestic and commercial boiler training, as well as supporting our future-focused plan to transform the heating industry in its push towards renewable energy.” 1 Sterling Court is also being marketed by the Leeds office of property consultancy Carter Towler. Other occupiers at Capitol Park include Barratt Homes (HQ), Hermes, the 4*Village Hotel, Depuy and Henderson Insurance Services.

UK Commercial Property REIT Limited (UKCM) has acquired a hotel development opportunity in Leeds, from Marrico (Sovereign Square) Ltd, a joint venture between Marrico LLP and Helios.

The site itself was owned by Leeds City Council and UKCM is to fund the development, which is to be completed by Marrico, for a total commitment of £62.7 million. The acquisition is in line with UKCM’s strategy to invest in operational real estate sectors that are expected to deliver resilient rental incomes. 

The 12-storey hotel is scheduled to complete in 2024 and will have a 25-year franchise agreement in place with Hyatt Hotels. The hotel will be operated under a lease by Interstate Hotels & Resorts, with UKCM’s rental income based on the income generated from the operation of the hotel.

The 140,000 sq ft property will comprise 305 rooms, split between the short stay Hyatt Place and the long stay Hyatt House brands. The hotel will provide meeting rooms, a gym and several food and beverage options, including a rooftop bar with its own dedicated entrance.

The development is targeting a BREEAM Excellent rating and will have a positive impact on the local community with the creation of a number of new jobs.

The hotel is located on Sovereign Square in central Leeds, in a prime position adjacent to the city’s main railway station and in close proximity to a number of high-quality office developments with long term corporate occupiers.

Will Fulton and Kerri Hunter, fund managers at UKCM, said: “This is the latest acquisition in line with the company’s strategy to enhance earnings by selective investment in assets where the rents are derived solely from their operational performance. By investing in this way in compelling locations with strong market dynamics and teaming up with strong, reputable tenants we are able to obtain a yield that is at a significant premium to that which would be derived from a traditional leasing model.

“Not only will this hotel benefit from a significant supply-demand imbalance of quality accommodation in Leeds and be operated by one of the world’s leading international hotel firms, it is also designed to be future fit with strong ESG credentials and a flexible split between short and long stay brands, as well as external food and beverage options to vary the asset’s offering and maximise its income potential.”

UKCM is managed and advised by abrdn. AREA acted for UKCM who were further advised by Whitebridge Hospitality. Addleshaw Goddard provided legal representation for UKCM.

DLA Architecture, Leeds is the architect for the scheme, Square One Law acted as advisers and legal representative and BNP Paribas as agent for Marrico and Helios.

Interstate Hotels & Resorts was represented by Shepperd and Wedderburn.