Banking giant HSBC has agreed to move to new Sheffield city centre offices - securing almost 3,000 local jobs and paving the way for the start of long-awaited Sheffield Retail Quarter project.
HSBC has signed a 15-year lease on the new office building in the heart of the city that will form the key part of the first phase of Sheffield Council’s £480m retail quarter project.
It was announced in May that HSBC, who is believed to be Sheffield’s biggest commercial employer, was making almost 600 Sheffield workers redundant and moving IT jobs to India, China and Poland.
The bank had already been in extensive negotiations with the council about moving to new city centre offices and a deal has now finally been done to keep the remaining 2,700 HSBC Sheffield jobs based in the city for the long-term - and have the bank act as an ‘anchor tenant’ for the first phase of the retail quarter.
A council report in July approved spending of up to £90m on the building of the new offices as part of the first phase of the retail quarter project.
HSBC is in the process of shutting its Hoyle Street offices this year, moving workers to its existing Griffin House building, where the bank’s lease expires in 2019.
It is hoped construction of the new offices on the site of the former Grosvenor House Hotel will begin early next year, ahead of the new building being ready by spring 2019.
As well as 140,000 square feet of office space and a rooftop terrace, the new building’s ground floor will be made up of retail units due to include shops, restaurants and bars.
There will be 60,000 sq ft of space available for this purpose, with the council in the process of seeking retailers to take up the space.
The premium office block will be located between Wellington Street, Cambridge Street, Charter Row and Furnival Gate.
John Hackett, chief operating officer of HSBC UK, said: “Sheffield is a major centre of excellence for our IT operations and we’re delighted to be confirmed as the first anchor tenant for the historic Sheffield Retail Quarter.
"The multi-million pound investment we’re making in our new home in Sheffield will allow us to provide our colleagues with a modern office environment right in the heart of the city.”
Councillor Leigh Bramall, deputy leader of Sheffield City Council, said: “Sheffield Retail Quarter is now becoming a reality and we are delighted that we can begin to deliver our vision for a compelling mix of retail, leisure and business which meets the needs of our city now and in the future.
“Having a major international company like HSBC on board gives the core of our city centre, and the burgeoning business and financial services cluster located there, a great boost.
"HSBC is one of the largest businesses in Sheffield and its new location in the retail quarter will enable it to invest in a modern office space for employees with high quality shops, cafes and public spaces on their doorstep.
"Sheffield is a great place to both live and work and more and more businesses are recognising that it’s the right place to attract excellent staff.”
The announcement comes just days after the city’s planning committee endorsed Sheffield City Council’s plans for Sheffield Retail Quarter.
Further work is set to take place on the intended second phase of the scheme between Barker’s Pool and Pinstone Street.
It is hoped the giant overhaul of the city centre will create better links between The Moor, Fargate and Division Street and attract big-name retailers and high-end fashion shops.
The council hope the overall scheme - due to be completed by 2021 - will result in thousands of extra jobs and bring an estimated extra £300m into the city centre every year.
The scheme will regenerate 900,000 sq ft around Cross Burgess Street, Pinstone Street, upper Fargate, Charles Street, Cambridge Street and Wellington Street.
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