SITE AT 20 AND 22 DON ROAD SHEFFIELD, S9 2UB

Investment News

Acting on behalf of private retained clients, and in conjunction with Fernie Greaves of Sheffield, FHP are pleased to report the completion of the above investment/development situation. The property is situated approximately 2 and a half miles north east of Sheffield City Centre and 1 mile due south west of Junction 34 of the M1 Motorway and close to the Meadowhall Shopping Centre. Lower Don Valley is an area which during the last 10 years has seen a prolific amount of development for B1, B2 and B8 uses.

The property comprises of 3 sites/sections, a purpose built building together with B2/B8 warehouse totalling some 21,500ft², a separate B2/B8 warehouse of some 17,000ft² and a site of 1.15 acres for which planning consent is sought for a development of 25,000ft² of B2/B8 accommodation. In addition the separate warehouse has a tenant’s option to break in 2011 and if this is exercised it will enable the clients to redevelopment this site to provide an additional 20,000ft² to 25,000ft² of B2/B8.

The property was originally offered for sale at a figure of £5,000,000. A sale was agreed at a price in the region of some £4,000,000 to show an initial return of approximately 7.37%. As and when Site 3 has been developed the total income to be received will be something in the region of £475,000 per annum indicating an overall yield before the rents are reviewed of something in the region of 8% – 9%.

FHP represented the purchasers throughout and are retained as managing agents and development consultants in conjunction with the joint agents. The end value of the completed schemes will probably be in excess of some £5,000,000.

Noel Roper comments:

“I have acted on behalf of this client for nearly 25 years. This is one of the most exciting investment/development situations which I have bought for the company. In addition to the vacant site both the other sites are underutilised and subject to planning consent it should be possible to obtain consent for the development of further offices on Site 1 of anything up to 20,000ft² and on Site 2 some 20,000ft² of B2/B8 accommodation. If implemented this will further increase the rental and capital values above £5million”