Sheffield flats and offices development sold for £37m

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A landmark development of 444 flats and offices in five buildings in Sheffield has changed hands for £36.75m.

Europa Fund IV and Addington Capital bought Velocity Village, Tenter Street, Sheffield, in a joint venture for £36.75 million.

It comprises five buildings surrounded by landscaped courtyards with 444 residential units - 73 sold on long leases and 371 fully let - as well as offices, a gym and a basement car park bought by Sheffield University in a previous, unrelated deal.

Velocity Village was sold by US private equity fund Lone Star which bought it for an undisclosed sum from another fund in January.

Hugo Black of Europa Capital said the company now planned to spend several hundred thousand pounds revamping communal areas.

The flats were originally built for young professionals but high demand from students had led to dozens moving in, creating a ‘mixed’ community, he added.

“This was a great opportunity to acquire a portfolio that offers occupiers a quality living environment with affordable but modern apartments in a major city centre.

“The high quality of the apartments makes them attractive to professionals and students wanting a mature living environment. The property’s proximity to the universities and Royal Hallamshire Hospital also adds to its popularity.”

Europa owns five other developments in Sheffield including student flats and housing and offices.

Matthew Allen, principal at Addington Capital said, “This acquisition is a continuation of our strategy of acquiring large residential blocks where we see the potential to add value from flat sales, re-positioning and rental growth.

“There is a demand/supply imbalance in the Sheffield residential market with house prices and rents expected to increase.”