Addington and Europa Fund IV, managed by Europa Capital have acquired Velocity Village, Tenter Street, Sheffield in a joint venture for £36.75 million. Cushman & Wakefield acted for the vendor.
Velocity Village is a modern residential led property comprising 5 adjacent buildings surrounding a number of landscaped courtyards with 444 residential units (73 sold off on long leases and 371 fully let on ASTs) and 38,000 sq. feet of commercial accommodation, together with basement car parking (sold off to the University of Sheffield).
The investment is well located in easy reach of Sheffield city centre and the city’s retail, bars and leisure amenities and is a short walk from the University of Sheffield and Sheffield Hallam University’s City Campus.
Hugo Black of Europa Capital said, “This is a great opportunity to acquire a largely PRS “place maker” portfolio that offers occupiers a quality living environment with affordable but modern apartments in a major city centre. The high quality of the apartments makes them attractive to professionals and students wanting a mature living environment. The property’s proximity to the University and Royal Hallamshire Hospital also adds to it’s popularity.”
Matthew Allen, Principal at Addington said, “This acquisition is a continuation of our strategy of acquiring large residential blocks where we see the potential to add value from a combination of individual flat sales, re-positioning and rental growth. There is a demand/supply imbalance in the Sheffield residential market with both house prices and rents expected to increase. On the commercial side there are opportunities to lease the rest of the offices, which currently have 7 separate tenants.”
He added: “This will be the fourth JV between Addington and Europa.”
In November 2014, Addington and Europa acquired 470 married quarter houses just outside the Lakenheath USAF base in Suffolk which they have been refurbishing for sale and rent.
