Lift-off as £20m investment is secured for Sheffield project

No 3 St Paul’s Place, which is a joint venture between developers CTP and Development Securities, Sheffield City Council and the Department for Communities and Local Government, is the final part of the development in the heart of Sheffield.

The 10-storey building will comprise 80,000 sq ft of new office space and completes the council’s broader Heart of the City project.

Developers are currently seeking a main contractor for the project but they said construction will start in April or May.

CTP is developing 3 St Paul’s Place in conjunction with London-based Development Securities, supported by Sheffield City Council, regeneration agency Creative Sheffield, SCR JESSICA, which was set up to support infrastructure and real estate investment opportunities across the region, and the European Regional Development Fund (ERDF), managed by the Department for Communities and Local Government.

CTP intends to sell the completed building to a private sector buyer.

An agreement between the developers and the council means the council will buy the property, 12 months after it has been built, unless CTP keep it or sell to another party at a higher price.

David Topham, director of Manchester-based CTP, said: “Of course there is an element of risk in any speculative development, but we are extremely confident that the quality of 3 St Paul’s Place, combined with its location, will ensure that occupiers for the building are swiftly found. Interest has been exceptionally strong already.”

He added: “3 St Paul’s Place will enjoy spectacular views over the renowned Peace Gardens and Millennium Square.

“It is also close to all the retail and leisure facilities of the city centre, together with the central bus and train stations and a number of car parks, including the new multi-storey Q-Park.

“The overall development has created a new central business district for the city centre and has set a high benchmark as to the quality of the workplace provided, the architecture of the building and surrounding areas.”

Coun Julie Dore, leader of Sheffield City Council, added: “This scheme shows just how innovative Sheffield can be. This will be the most sought-after office block in Sheffield, completing the £130m Heart of the City project.

“Accommodating over 700 jobs, we firmly believe that 3 St Paul’s Place will help existing businesses who are crying out for good quality new offices in the heart of the city, as well as potentially attracting new businesses to Sheffield.”

She added: “We couldn’t have brought this development forward without the ground-breaking delivery model put in place by Creative Sheffield, the council’s economic arm; the scheme wouldn’t be happening without major private sector investment, European funding, the JESSICA Investment Fund and the council being prepared to do what’s necessary to enable the development to proceed.”

St Paul’s Place already features the 161-bed St Paul’s Mercure four-star hotel; No 1 and No 2 office developments occupied by lawyers DLA Piper, RBS, Barclays, Coutts and the Department of Children, Schools and Families; a 330-apartment residential tower block; the famous ‘Cheesegrater’ car park, operated by Q-Park; a casino; and restaurants and cafes including Pizza Express, Piccolinos, Café Nero and Café Rouge.

The marketing agents for 3 St Paul’s Place are the Sheffield office of Knight Frank, together with the Leeds offices of BNP Paribas and DTZ.

Peter Whiteley, of Knight Frank, said: “The earlier office phases have proved extremely successful and there is every reason to believe that 3 St Paul’s Place will prove equally attractive to potential occupiers.

“The facilities close to the new building make it the perfect place to live, work and play.”

Tim Cameron-Jones, head of DTZ North, added: “The innovative agreement between Sheffield City Council and CTP will facilitate the first speculative scheme in the region for many years.

“This will give the city a competitive advantage in securing new occupiers who will be attracted to this prestigious scheme.”