‘Optimism’ over £35m office block plan in Sheffield

David Topham, chief executive of CTP, said he had recently bid to three parties and just received a new enquiry for a “substantial amount of space.”

The firm hopes to build 4 St Paul’s Place, a 10-storey block between Pinstone and Union streets. It is looking for an occupier to take half before it launches the project. A ‘pre-let’ - signing a tenant while a building is still on the drawing board - would then trigger bank or institutional finance.

Mr Topham said: “I’m very optimistic, it’s the right location and the right scale and it complements the Heart of the City II. We’ve got terms out to prospective tenants and a decision could come soon.”

A building could take two years to complete, including obtaining planning permission, construction and fit-out.

CTP built the St Paul’s scheme in the city centre over the last decade. It includes blocks 1, 2 and 3, a hotel, car park and residential tower.

Office take-up in Sheffield reached a 10-year high in 2017 when availability of prime office stock fell to its lowest level on record. Demand has continued into 2019, sparking concerns over a lack of space.

Mr Topham said available space would attract companies to Sheffield - as had happened with 3 St Paul’s Place. But only a small part of the market wanted a ‘pre-let’.

He added: “If you look across the market available space has a beneficial impact. But there is no available space and none in the pipeline. Sheffield is a major commercial centre with great connections, if space was there businesses would be attracted.”

Kevin McCabe’s Scarborough Group hopes to start on a new office on Sheaf Street early next year. And Peter Swallow’s Urbo is developing a £150m scheme at West Bar after landing investment from Legal & General.

Developer RBH has £50m plans to transform the old HSBC complex on Tenter Street into a business centre for 2,500 people.