Debenhams in Sheffield sold at huge discount after 'catastrophic' fall in value
The new owner of the former Debenhams building in Sheffield bagged a massive bargain after a ‘catastrophic’ fall in value when the chain went bust.
London firm MHA snapped up the five-storey building on The Moor for £1.5m after its value plunged from £2.7m – a saving of £1.2m.
The firm took out a mortgage with lender TAB in March.
MHA has yet to comment on its plans for the building. But TAB said MHA intended to sell the ‘site with planning permission or after the property is refurbished and tenanted’.
A use was not mentioned, but a proposal by Sheffield project managers Arup to turn it into a ‘High Street Hospital’ has won an award.
Meanwhile, the large Debenhams at Meadowhall is still shuttered. Owner British Land has been approached for comment.
But in Leeds, a new future has been announced for the former Debenhams on Briggate. It will be converted into 124 student flats, while the basement, ground and first floors will be shops.
Surveyor Simeon Andersen of Clifton Securities provided a report on the Debenhams on The Moor to TAB.
He stated it was a prominent city centre asset that ‘has enough gravitas to attract significant interest’ from potential developers who could buy it.
He added: “The council will welcome the regeneration of the site and the positive PR it will generate for the city centre. The borrower is charismatic and experienced with the understanding and experience to re-gear the head lease whilst simultaneously gaining planning consent.”
Daniel Fireman, of law firm Howard Kennedy, also acted for TAB.
He said: “It was a very interesting deal involving a complex city centre site which suffered a catastrophic downturn in value consequent on Debenham's demise and is open to a number of exciting options for future use.”
MHA is based in Mayfair in London. It was founded by property entrepreneur Hossein Abedinzadeh and is an investment and development company with commercial, residential, retail and mixed-use properties largely in central London.
The Moor is owned by property company NewRiver which is the ‘head leaseholder’ of the Debenhams building. The firm has been approached for comment.