BROOKSHAW PARK Kelham Island, Sheffield S3 9UH Executive Summary
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PRIME CITY CENTRE DEVELOPMENT SITE Potential for BTR/Residential Development of up to 450 Units STRATEGIC SITE ACTING AS THE GATEWAY TO KELHAM ISLAND BROOKSHAW PARK Kelham Island, Sheffield S3 9UH Executive 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 ac. 450 unit, 8-10 storey BTR development >> Offers invited Kelham Island offers a rich architectural and cultural backdrop BROOKSHAW PARK Kelham Island, Sheffield S3 9UH 2 PONDS FORGE HEART OF THE CITY PENNINE 5 HOLLIS CROFT DUN WORKS HOYLE STREET Leisure complex with £130m redevelopment Mixed- used redevelopment Completed Completed 650 student /250 BTR Olympic-sized swimming scheme including city’s of 450,000 sq ft former Watkins-Jones 1,000 bed 250 units BTR scheme pool for 2,600 spectators tallest building HSBC student scheme LITTLE KELHAM Completed NURSERY STREET WEST BAR COTTON MILL ROW Developer: Citu Planning Approved Mixed-use £175 million In Planning Developer: Brickland regeneration scheme Developer: Qualis 250 unit BTR scheme funded by L&G 84 units HALLAMSHIRE HOSPITAL SHEFFIELD HEART OF NEW RETAIL UNIVERSITY THE CITY QUARTER SHEFFIELD TRAIN SHEFFIELD STATION HALLAM UNIVERSITY UNIVERSITY THE MIRADOR BUS On site Jan 2020 STATION Developer: Scotfield 500 unit BTR scheme PENNINE HOLLIS CENTRE PONDS CROFT FORGE FORMER HSBC (NEW DEVELOPMENT) CASTLEGATE BROOKSHAW REGENERATION PARK THE MIRADOR SHALESMOOR RIVERSIDE WEST BAR TRAM STOP BUSINESS DIRECT DUN WORKS COTTON MILL ROW LITTLE KELHAM NURSERY STREET BROOKSHAW PARK Kelham Island, Sheffield S3 9UH 3 Kelham Island 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. Winner of "The Great Neighborhood" award by Academy of Urbanism in 2019 beating out Hackney Wick and Ancoats, Manchester BROOKSHAW PARK Kelham Island, Sheffield S3 9UH 4 Kelham Island 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 sqft 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. "An abundance of independent eateries, drawing crowds after a unique experience" Sheffield Telegraph BROOKSHAW PARK Kelham Island, Sheffield S3 9UH 5 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. Brookshaw Park offers outstanding potential for a residential development in the heart of Kelham Island BROOKSHAW PARK Kelham Island, Sheffield S3 9UH 6 Location UPPERTHORPE A61 KELHAM ISLAND Sheffield is the fifth largest regional city in the UK with a population of 576,000 SHALESMOOR TRAM STOP WEST BAR and has recently seen extensive regeneration Tram every 10 mins Mixed-use to city centre projects such as the Peace Gardens and BRIDGEST £175 million scheme Millennium Galleries, together with the Heart M I L BROOKSHAW L A61 S A of the City scheme, which is regenerating National Emergency N PARK D Services Museum the retail core. National Emergency NETHERTHORPE Services Museum CROOKESMOOR Sheffield’s central location gives easy access to many major conurbations, with THE UNIVERSITY PARK HILL Manchester only 45 miles to the west and OF SHEFFIELD BROAD LANE Weston Park Ponds Forge Leeds 35 miles to the north. The city’s MuseeumMuseeum Intertnational Supertram Sports Centre position on the mainline rail network gives H route easy access to London St Pancras in under 2 hours. Whilst in the city itself transport Winter A61 Gardens links are very strong, with the Super Tram H SHEFFIELD system having been operational since 1994 SHEFFIELD TRAIN STATION Royal Hallamshire ST HANOVER UPPER and serving 50 stops. Hospital SHEFFIELD RETAIL QUARTER Sheffield Hallam University Masterplan includes HSBC The city has a strong educational reputation taking 140,000sq ft of office space City Campus The Moor HANOVER WAY with a student population of 66,500, principally at Sheffield Hallam University and the Russell Group Sheffield University. BROOMHALL Graduate retention rate is an above average ST MA RY’S 42% (source SHU) and is evidence of the GATE Grosvenor A625 Casino vitality of the local economy. Sheffield Botanical Gardens A61 Bramall Lane LONDON ROAD Sheffield is the fifth SHARROW largest regional city in the UK BROOKSHAW PARK Kelham Island, Sheffield S3 9UH 7 Description The property is a roughly triangular level site Vodafone extending 2.02 acres (0.82 hectares) in a very (ThusUnit plc) Q prominent location fronting on to Shalesmoor. The property comprises retail, warehouse and Unit MUnitN leisure uses and accessed off Russell Street. World of Suites Ltd Unit L Planning The Gym Ltd A formal Pre-app process has been run Unit J&K 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 The property is in a very prominent location fronting on to Shalesmoor BROOKSHAW PARK Kelham Island, Sheffield S3 9UH 8 Tenancies All the units are let on effectively full repairing and insuring terms with a service charge payable in respect of the common parts. Area Units Tenant sq m sq ft Lease Rent Rent psf Review Comments 13/3/24 Personal right for tenant to have a 13/3/14 – Fixed 5 year lease extension at £105,496. J & K The Gym Ltd (05059669) 1,283.1 13,811 £90,446 £6.55 12/3/29 uplift to Service charge cap of £14,690 uplifted £97,681 in 2024 in line with RPI. World of Suites Ltd 10/9/06 – L (3415060) with g’tee from 396.8 4.271 £21,000 £4.92 - Tenant holding over 9/9/15 D Thompson & D Wild Tenant interest for letting at £6,000 pa on a 2 year lease with a mutual break M & N In Negotiations 80.5 866 - - - - at the end of the first year. Excluded from the LTA 1954. Tenant part of Vodafone. Exclusive 1/8/2001 – 1/8/2021 Q Thus plc (SC192666) 1,033 11,120 £42,165 £3.79 right to parking spaces between the 31/7/2026 to OMV unit and Russell Street. Ongoing discussions in hand with Car park 138 spaces car park operator which will provide additional income. Northern Powergrid interested in Substation Northern Powergrid 1963-1984 £10 - taking a new 60 year lease. No s25/s26 notice served Total 2,793.4 30,068 £153,621 BROOKSHAW PARK Kelham Island, Sheffield S3 9UH 9 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.