Claymore Group, acting on behalf of a fund manager client, has announced two significant lettings at Derwent House, Sheffield, to global engineering services consultancy Mott Macdonald and software and professional services company SDL plc.
In a sign of positive sentiment in Sheffield’s office market, Mott Macdonald will take the third (part) and fourth floors totalling 16,400 sq ft, while SDL Plc is taking the first and second floors, totalling 19,600 sq ft.
These two deals represent 90% of the vacancy which was in place when Claymore acquired the building in April 2016. They follow a comprehensive refurbishment to update and modernise the seven-storey office block in line with the latest building and energy efficiency standards. The refurbishment includes a major overhaul of the common areas and reception to create a larger, statement entrance together with the introduction of high quality staff amenities. Only 4,400 sq ft on the fourth floor remains available to let, in which there is a strong interest.
Guy Cooke, Director at BNP Paribas Real Estate, said: “We are delighted to see these two flagship occupiers commit to Derwent House. This is great news for the City Centre. The grade-A refurbishment underway at the building, coupled with the prime central location, was a winning combination. The decision to go ahead with the investment at Derwent House is endorsed by these two high quality lettings.”
Neal Shegog from Claymore Group said: “Our early success at Derwent House underpins our belief in the second tier regional office markets, which have seen restricted development and loss of older stock to alternative uses in recent years, leading to limited options for national occupiers aiming to upgrade their accommodation and therefore rental growth. We are delighted to welcome tenants of the calibre of Mott Macdonald and SDL plc to the building.”
Rob Darrington, Partner at CPP, said: “Derwent House is a prominent, centrally located property that meets the needs of its occupiers on a number of levels – from its proximity to major transport links and the city centre, through to its excellent floorplate efficiencies.
“We’re delighted to have been involved in securing such a prestigious line up of tenants on behalf of Claymore Group that not only marks a real boost to the local economy, but is also indicative of a strong start to the commercial property market in Sheffield in 2017.”
Derwent House is already home to established international companies such as Bluestone Credit Management, Withers & Rodgers LLP and RSI Ltd.
BNP Paribas Real Estate and CPP are instructed to market the remaining 4,400 sq ft suite at a quoting rent of £17.75 per sq ft.