The Balance, the multi-let, flagship Sheffield office building, has been sold for £15 million in a deal brokered by leading global property consultancy Knight Frank.
The 114,000 sq ft building on Pinfold Street was sold in an off-market deal to leading UK fund manager Kames Capital, by a retained fund managed by CBRE Global Investors.
The net initial yield (NIY) was approximately 9 per cent.
Rebecca Farnsworth, investment partner with Knight Frank in Leeds, who advised CBRE Global Investors, said: “This is tremendous news for Sheffield, putting this flourishing city firmly on the investment map. It is a resounding endorsement of the city centre’s economic progress which has accelerated in recent years.
“Following one of Sheffield’s largest occupational deals in 2017 to Johnston Publishing, the Balance was 100 per cent let at the point of sale with other key occupiers including Plusnet, Regus, KPMG and Towergate. This made The Balance an attractive investment opportunity, with room for substantial rental growth.
“The on-going city centre transformation is cementing Sheffield’s future, acting as a catalyst for further regeneration and underlining its exciting future as a leading UK city. The recent sale of 3 St Paul’s Place underlines the renaissance of Sheffield, as does the new £480 million city centre retail scheme, Heart of the City II, which is now under construction.
“Sheffield now has a balanced and productive economy, straddling many sectors including advanced manufacturing, health and wellbeing and education, alongside a wide range of creative and professional services.”
The Balance is ideally located in the heart of the professional office quarter in the vibrant city centre, surrounded by a host of quality venues and amenities and adjacent to the city’s tram route. Junction 33 of the M1 is only ten minutes away.
Kames Capital were advised by Clay Street.
Commenting on the purchase Richard Peacock, co-fund manager of the Kames Property Income Fund, said ‘The acquisition of The Balance secures an asset closely aligned with the objectives of the fund. The property offers an attractive income return, let to good covenants off reasonable rents in a market where there is the potential for further growth.
“The addition of The Balance to a £700m portfolio that already includes city centre buildings, Fountain Court and Ventana House, demonstrates our belief in Sheffield. The fund looks forward to being an active stakeholder in the city’s success in the future.”