M&G seeks new owner for Sheffield office

M&G Real Estate has put a for-sale sign on a multi-let office block in Sheffield. The investor has appointed Cushman & Wakefield to find a new owner for 3 St Paul’s Place, with offers sought in excess of £17.68m. M&G bought the building in 2018 for £23.75m from U+I Group, which developed the building in partnership with CTP. If sold at the asking price, the deal would represent a net initial yield of 9.92% and a capital value of £231 per sq ft. The 76,460 sq ft building is almost fully occupied, with only one suite available, measuring 4,178 sq ft. Occupiers include BDP Architects, Handelsbanken, law firm Freeths, education services provider TES Global and engineering consultancy Arup. Designed by Hodder + Partners, 3 St Paul’s Place is the latest addition to the wider £130m city centre business district known as Heart of the City. The office building was delivered in 2016 and offers BREEAM Excellent rated workspace alongside a reception area and lounge lobby. The development also sits close to Sheffield’s wide range of amenities and transport infrastructure, as well as cafés, bars and restaurants, a hotel and a health and fitness centre. Photo © M&G Real Estate