A commercial building has been put up for sale with a £3.87m price tag after securing a letting to the Home Office.
Foundry House, in Sheffield’s Riverside Exchange Quarter, secured a 20,000 sq ft letting to the government department in one of the city’s biggest office deals of 2018.
The Home Office has designated Sheffield as the national processing centre for UK Visas and Immigration. Foundry House will operate as a training centre for border control operations.
The four-storey building is now fully let to the Government, with the remaining 6,000 sq ft occupied by the Health and Safety Executive (HSE), the body responsible for the encouragement, regulation and enforcement of workplace health, safety and welfare. Foundry House provides regional HSE operations and support for the Sheffield and South Yorkshire areas.
Agent Lambert Smith Hampton is seeking offers of more than £3.87m, reflecting a net initial yield of nine per cent after costs, with strong demand anticipated from UK property companies, overseas investors and family trusts.
Foundry House is adjacent to the £175m West Bar Square regeneration scheme by Urbo, which will feature 700,000 sq ft of office, residential and leisure space.
Tom Burlaga, associate director at LSH’s Sheffield office, said: “We are delighted to secure a 20,000 sq ft letting to the Home Office.
“The average deal size in the city centre is below 5,000 sq ft so this is a standout letting in the market. It’s also a great deal for Sheffield as the Government has made a commitment to establishing an immigration facility in Sheffield which will bring hundreds of jobs to the city.
“With the proposed West Bar Square development, the Riverside Quarter is set for an exciting period of improvement.”