Third Sheffield office block snapped up in three months as sales hit £65m

One of Sheffield's newest offices has been snapped up by an investment company for Danish pension funds for £26.6m.

Monday, 21st May 2018, 4:53 pm
Updated Monday, 21st May 2018, 4:56 pm
Kevin McCabe, at the opening of Acero last year.

Acero, a six-floor block between Sheaf Street and the bus station, was bought by Britannia Invest A/S. It opened last summer.

It is the third multi-million pound sale in three months after 3 St Paul’s on Norfolk Street went for £24m and The Balance on Pinfold Street sold for £15m - a total of £65.6m.

4 St Paul's Place Sheffield (mock up)

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Chris Taylor, director of investment manager APAM, said: “We continue to seek high-quality multi-let regional office opportunities for Britannia.”

Acero was jointly funded by Sheffield United co-owner Kevin McCabe’s Scarborough International Properties Limited and Metro Holdings of Singapore.

Signs on the building say it is 75 per cent let. Engineering consultancy Atkins has taken half of the third floor, drug modelling firm Simcyp has a floor and ‘flexible workspaces’ company Spaces has taken two floors.

Simon McCabe, joint chief executive of Scarborough, said: “This sale marks the completion of a project which began as a speculative development opportunity that the team has taken through construction, leasing and ultimately onward sale to an investor.

How Vidrio, at right, could look.

“We will now be looking to bring forward the final phase of Digital Campus.”

Office take-up in Sheffield reached a 10-year high last year prompting talk of a building boom to meet demand.

Scarborough has had approval for plans for Vidrio, an eight-storey block next to Acero, while developers Schroders and CTP have a rival scheme for a 10-storey building on Pinstone Street.

Four St Paul’s includes a proposed 250-apartment block with ground floor shops. It would have a frontage facing the top of The Moor where H&M is planning to move into the former McDonald’s building.

A planning application is currently being pursued and Turner Investments will be seeking a partner to acquire the site on a ‘forward-funded basis.’

Earlier this year CTP sold 3 St Paul’s on Norfolk Street for £24m to London investment company M&G Real Estate.