Barwood Capital, the real estate investment and development specialist, through its Growth Fund IV, has purchased an 11-acre retail warehouse site at Greenland Road in Darnall, Sheffield, South Yorkshire for £5.5 million, with Tungsten Properties acting as the development manager.
Tungsten Properties secured the site with Barwood Capital’s Regional Growth Fund IV, completing the acquisition as funding partner for the scheme which will deliver, subject to planning permission, a total of 190,500 sq ft of commercial property.
The scheme will include the refurbishment of the 133,000 sq ft former B&Q retail warehouse as two industrial units, and the development of two further detached warehouse units totalling 27,500 sq ft and a 30,000 sq ft trade counter scheme.
A spokesman said: "The site benefits from an extensive and prominent frontage to one of the city’s main arterial routes. Once completed the project is expected to deliver up to 150 new jobs."
Work is due to start in the first quarter of 2021. It is expected to be completed in the fourth quarter of next year.
This is the third project where the two companies have joined forces, following its projects at Glasshoughton, Yorkshire in Growth Fund III and more recently, Bardon Park, Leicestershire also in Growth Fund IV.
William Chambers, investment director, Barwood Capital said: “This transaction demonstrates one of Barwood Capital’s key capabilities in partnering with an experienced and successful developer, committing investment into this regional under performing asset to unlock value through the change of use and development process to provide new workspace and jobs.
"This is a high-profile site with a great range of flexibility, and discussions are already well progressed with a variety of occupiers for various elements of the scheme.”
Jeff Penman, managing director, Tungsten Properties added: “We identified this prominent site for its strategic position to the east of Sheffield’s city centre and the locality’s high demand for new space. To partner again with Barwood Capital demonstrates the strength of our relationship and we look forward to delivering our third project together.”
Barwood Capital’s Growth Fund IV is a five-year closed end fund which invests in UK regional property.
The fund has to date raised just over £50 million with further raises anticipated in Q4 2020 to meet the pipeline of new opportunities.
Agents for the project are Gent Visick and Colliers International.
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