Barwood Capital, the Northampton-based UK regional real estate investment and development specialist, through its Growth Fund IV, has purchased an 11-acre retail warehouse site at Greenland Road in Darnall, Sheffield, South Yorkshire for £5.5 million, with Tungsten Properties acting as the development manager.
Tungsten Properties secured the site in June 2020 with 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 comprise the refurbishment of 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.
The site benefits from an extensive and prominent frontage to one of the city’s main arterial routes. Greenland Road is in a strategic position 2.5 miles east of Sheffield city centre and close to the M1 motorway junction 34 and the Meadowhall Shopping Centre.
Once completed the project is expected to deliver up to 150 new jobs. Works are due to commence in Q4 2020 with completion in Q4 2021.
This is the third project where the two companies have joined forces: Super G in Glasshoughton, a 261,000 sq ft new warehouse, was let in August 2019 to global sportswear company PUMA for its national distribution centre on a 15 year lease with the building then sold to South African specialist industrial REIT, Equites Property Fund, and at Bardon Industrial Estate in Leicestershire where Barwood Capital, in a joint venture with Merseyside Pension Fund, provided a £17.6 million funding package for the Tungsten Park Bardon project. The 11.25 acre site is currently under construction to speculatively develop a four-unit industrial scheme totalling 200,500 sq ft, with practical completion due in March 2021.
William Chambers, investment director, Barwood Capital 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, managing director, 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.”
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 £50 million with further raises anticipated in Q4 2020 to meet the pipeline of new opportunities.
Find out more about the project: https://www.tungsten.uk.com/tungstenparksheffield