Barwood Capital has bought an 11-acre retail warehouse site at Greenland Road in Darnall, Sheffield, for £5.5m, with Tungsten Properties as the development manager.
Tungsten Properties secured the site with Northampton-based Barwood Capital’s Regional Growth Fund IV, completing the acquisition as funding partner for the scheme which will deliver, subject to planning permission, a total of 190,500 sq ft.
The scheme will refurbish the 133,000 sq ft former B&Q retail warehouse as two modern industrial units, and the development of two further detached warehouse units totalling 27,500 sq ft and a 30,000 sq ft trade counter scheme with amenities.
Greenland Road is 2.5 miles east of Sheffield city centre and close to the M1 motorway junction 34 and the Meadowhall Shopping Centre.
The agents for the project are Gent Visick and Colliers International.
Once completed the project is expected to deliver up to 150 new jobs. Works are due to start in quarter one 2021 with completion in quarter four 2021.
This is the third project where the two companies have joined forces, following projects at Glasshoughton, Yorkshire in Growth Fund III and more recently, Bardon Park, Leicestershire also in Growth Fund IV.
Barwood Capital’s Growth Fund IV is a five-year closed end fund which invests in UK regional property, driven by significant ongoing changes in technology, infrastructure and demographics.
The Fund has to date raised just over £50m with further raises anticipated in quarter four of 2020 to meet the pipeline of new opportunities.
Barwood Capital Investment Director William Chambers said: “This transaction demonstrates one of Barwood Capital’s key capabilities in partnering with an experienced and successful developer, committing investment into this regional under performing asset to unlock value through the change of use and development process to provide new workspace and jobs.
“This is a high-profile site with a great range of flexibility, and discussions are already well progressed with a variety of occupiers for various elements of the scheme.”
Jeff Penman, MD, Tungsten Properties, added: “We identified this prominent site for its strategic position to the east of Sheffield’s city centre and the locality’s high demand for new space.
“To partner again with Barwood Capital demonstrates the strength of our relationship and we look forward to delivering our third project together.”