Brookshaw Park, Kelham Island

Sheffield, Yorkshire S3 9UH

Overview

Excellent Summary

  • Prime and very prominent 2.02 acre city centre development site
  • Kelham Island offers a rich architectural and cultural backdrop and provides the most exciting urban living opportunity in the city
  • Strong market dynamics with housing undersupply and high graduate retention rate
  • Valuable current income of £153,621 pa with scope to increase
  • Principal sitting tenants open to discussions about re-sites
  • Positive pre-application discussion with Sheffield City Council about a c. 450 unit, 8-10 storey BTR development
  • Offers invited

Location

Sheffield is the fifth largest regional city in the UK with a population of 576,000 and has recently seen extensive regeneration projects such as the Peace Gardens and Millennium Galleries, together with the Heart of the City scheme, which is regenerating the retail core.

Sheffield's central location gives easy access to many major conurbations, with Manchester only 45 miles to the west and Leeds 35 miles to the north. The city's position on the mainline rail network gives easy access to London St Pancras in under 2 hours, whilst in the city itself transport links are very strong, with the Super Tram system having been operational since 1994 and serving 50 stops.

The city has a strong educational reputation with a student population of 66,500, principally at Sheffield Hallam University and the Russell Group Sheffield University. Graduate retention rate is an above average 42% (source SHU) and is evidence of the vitality of the local economy.

Situation

Brookshaw Park is situated fronting onto Shalesmoor, which forms part of the central ring road and is to the north of the retail core. The site is bounded by Shalesmoor, Russell Street and Bowling Green Street. Sheffield University, Sheffield Hallam University and the city's railway station are all situated within 3/4 mile of the site, with Shalesmoor tram stop less than 1/4 mile away.

Kelham Island, once the heart of industry in the city, has now transformed to become of its most exciting neighbourhoods and was recently voted 8th in the list of the UK's top hip hangouts. The remains of the numerous cutlery and steelworks, factories and workshops are part of what gives the area its distinct charm, with an ongoing transformation into a diverse range of uses, from micro breweries to galleries.

Kelham Island is now regarded as one of the most desirable food and living areas in the city, the area has long been a mecca for renowned real ale pubs such as the Kelham Island Tavern, The Fat Cat, The Riverside and The Gardeners Rest. Alongside great beer, great food has also become a staple of the area, with street food night markets and the Cutlery Works, the largest independent food hall in northern England, housing a hive of food and drink outlets.

Kelham Island has also seen an influx of established start-up businesses from a broad range of sources especially media, design and IT.

Immediately to the east, Urbo developments are bringing forward the 7 acre West Bar site which has outline planning consent for a mixed residential, hotel and office scheme together with a multi-storey car park. Terms are agreed with L&G and Sheffield City Council for funding for a 100,000 sq ft speculative office scheme and a 350 unit BTR scheme. To the west of the site on the corner of Shalesmoor and Hoyle Street, Scotfield are planning the Mirador, a 489 unit BTR scheme, giving further evidence of the area's potential for urban living.

The Opportunity

Brookshaw Park is a very prominent city centre site, which offers outstanding potential for a residential development in the heart of Kelham Island, Sheffield's most culturally and architecturally interesting urban district.

The site produces a valuable income stream, with opportunities to enhance this in the short term through lettings and commercialisation of the car park. The site's core location in the heart of one of the city's most culturally and architecturally engaging districts, makes it particularly suitable for a residential development, with demographics and housing supply particularly in favour of a built to rent residential development.

Description

The property is a roughly triangular level site extending 2.02 acres (0.82 hectares) in a very prominent location fronting on to Shalesmoor. The property comprises retail, warehouse and leisure uses and is accessed off Russell Street.

Planning

A formal Pre-app process has been run with Sheffield City Council to establish the development potential of the site. This engagement was very positive and scoped out the potential for a residential development of up to 450 predominantly apartment units, with a small number of town houses with massing of up to 8-10 storeys being acceptable.

The property is not situated in a conservation area, but sits immediately between the Kelham and Furnace Hill CAs, providing rich architectural character on the doorstep.

Tenure

Freehold.

Tenancy

All the units are let on effectively full repairing and insuring terms with a service charge payable in respect of the common parts.


VAT

The property is elected for VAT and hence this will be payable on the purchase price unless the property can be transferred under the TOGC provisions.

Occupational Overview

The property offers an excellent income stream with 86% secured on very strong covenants, whilst development proposals are finalised.

There is a clear opportunity to re-site The Gym within a new development, which would also provide ground floor vitality onto Shalesmoor.

The Thus unit is only partially used by Vodafone, with around half of the unit empty and only a minority of the server racks occupied. The facility is an important piece of network infrastructure, but given the prospect of a medium-term lease expiry at which the likelihood is landlord would resist a new lease, there is the opportunity to discuss an early exit, which would allow them to downsize.

The remainder of the income, including a small sub-station which is holding over, is short term in nature.

Data Room

A comprehensive data room with legal, planning and environmental information is available, with access on request.

Terms

The site and buildings are offered for sale on a freehold basis subject to the existing tenancies.

Proposal

Offers invited.

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