Hartshead Square, a prime city centre mixed-use commercial development in the heart of Sheffield has been brought to the market for £41m by Greenridge Investment Management.
The asset,– covers almost 300,000 square feet and is fully let with 100% of the income secured against undoubted and 5A1 Dun & Bradstreet Rated covenants for in excess of 10 years. The current passing rent from the property is just under £3m per annum, 73% of which is receivable from the Secretary of State. 88% of the income is subject to RPI linked reviews, inflation proofing the investment.
Sheffield is experiencing unprecedented change with £1.3 billion to be invested in the region. With major global companies such as McLaren and Boeing announcing new purpose built facilities in the region, Sheffield is being firmly placed on the radar of international investors. The immediate vicinity of Hartshead Square is being upgraded with a number of redevelopments including residential, student residential, hotel and the creation of a tech hub, increasing the vibrancy and diversity of the area.
Offers for in excess of £41m are being sought for Hartshead Square, which would reflect a net initial yield of around 6.36%.
Greenridge director, Bik Bhuptani, says: “With NCP recently secured on a long-term lease, The Secretary of State openly stating that they wish to remain at the property and significant on-going investment and development into Sheffield, this is an asset that still has huge potential for growth. An acquisition at this level, based on indicative debt terms, would produce an attractive cash on cash return in excess of 10% pa.”
Greenridge Investment Management is being advised by Knight Frank, whose director, Rebecca Farnsworth, adds: “In a market short of opportunities, Hartshead Square presents an attractive Sharia compliant investment with exceptionally secure income, the majority of which benefits from RPI linked increases. Sheffield is an exciting and evolving city to invest in.