A 28 acre site in the heart of Sheffield has been sold for £41m to a property developer who plans to create new housing in the city centre.
The Moor has been bought by a joint venture between property developer NewRiver and Bravo Strategies III LLC (BRAVO), a private-equity-style fund run by US investment firm Pimco.
The site is located close to the city's railway station, council offices and both Sheffield University and Sheffield Hallam University. It is classed as one of the city centre's "quarters" and has been developed into a retail and leisure centre.
In total, The Moor contains 680,00sq ft of retail and leisure space and contains a number of anchor stores, including Next, Sainsbury's and Primark. There is also a 670-space car park, a cinema and The Moor Market, which is a covered marketplace owned by the council.
NewRiver said the £41m price tag was a "significant discount to the breakup value" of the site, which contains 15 assets that could potentially be sold.
After acquiring the site the joint venture intends to redevelop parts of The Moor, with a focus on creating more homes in the city centre. This will include up to 1,100 build-to-rent residential units and 300 student flats.
Allan Lockhart, chief executive of NewRiver, said: “The acquisition of The Moor with our joint venture partner BRAVO represents a rare opportunity to acquire a 28 acre estate in one of the 海角视频’s largest and fastest-growing cities, at a very attractive price which is far below the breakup value of the site.
"This acquisition will generate very attractive returns for NewRiver, driven by sustainable rental income and capital growth through the redevelopment of parts of the estate, principally for residential uses.
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"Sheffield City Council has demonstrated that it is a forward-thinking and proactive local authority, and we look forward to working with them to deliver a vibrant and connected city centre. Taking a 10% stake ensures we maintain our financial discipline, as we remain on track to meet our target of £80m to £100m of disposals this financial year.”
The site has been bought from CEP ASI 海角视频PF Nominee 1 Limited and CEP ASI 海角视频PF Nominee 2 Limited for £41m after initially exchanging contracts in February. The deal represents a capital value of £60 per sq ft.
NewRiver holds a 10% share in its joint venture with Bravo and therefore owns 10% of the stake in The Moor. NewRiver will also act as the site's asset and development manager and will receive a fee for this work.
The Moor will also benefit from Sheffield City Council's £470m "heart of the City II" regeneration project, which will create a mixed-use district in the city centre that will connect all the neighbouring quarters.
The project aims to generate 7,000 jobs in the city by 2030 and has already seen the development of a five-storey office building, which is fully let to HSBC and CMS, and a commitment by John Lewis to a new 20-year lease and refurbishment of its city centre store.