Flagship Sheffield complex sold for £24m

The flagship 3 St Paul's Place office building in Sheffield has been sold to a London-based investor for £24m.

Developers U+I and CTP, who built the 78,000 sq ft Grade A speculatively, hailed the sale “as a massive vote of confidence in the city of Sheffield” after it M&G Real Estate agreed to purchase.

Among the high-profile occupiers at 3 St Paul’s Place are civil engineers Arup, architects BDP and HLM, leading Swedish bank Handelsbanken and lawyers Freeths.

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Simon Hesketh of co-developers U+I said: “We are delighted to have been involved in delivering 3 St. Paul’s Place, a first class office development for Sheffield.

“The sale to M&G underlines the quality of the building and underlines its position as significant new commercial centre for the city.”

David Topham, director of Manchester-based developers CTP added: “We are tremendously proud of what we have achieved at 3 St Paul’s Place. It is the first speculative office building to be developed in Sheffield since the recession and now boasts a number of high-quality occupiers.

“The sale completes the St Paul’s Place masterplan, which has been a primary regeneration initiative for Sheffield city centre and a crucial part of Sheffield’s £185m Heart of the City project.

“It puts Sheffield firmly on the map as a business destination.”

Henrie Westlake, investment partner at the Leeds office of global property consultancy Knight Frank, who advised CTP and U+I, commented: “The sale of 3 St Paul’s Place reinforces the building’s position within the market, as one of the most prestigious developments within the Sheffield City Region.”

The construction of the 10-storey 3 St Paul’s Place went ahead following a landmark agreement between CTP and U+I, the specialist regeneration developer and investor, with Sheffield City Council and the Department for Communities and Local Government. Further finance was provided by Barclays and SCR Jessica.