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Greenridge to sell £41m Sheffield mixed-use block

By Paul Norman - Friday, May 11, 2018 8:32

Greenridge Investment Management has put Hartshead Square, a city centre office -led mixed-use commercial development in the heart of Sheffield, on the block for £41m.

The asset, which covers almost 300,000 sq ft, is fully let.

The passing rent from the property is just under £3m pa.

Offers for in excess of £41m are being sought for Hartshead Square, which would reflect a net initial yield of around 6.36%.

Greenridge director, Bik Bhuptani, 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, whose director, Rebecca Farnsworth, 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,” she said.

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