The Department for Work and Pensions (DWP) has signed for the 100,000 sq ft No.1 West Bar Square office scheme in Sheffield.
No.1 West Bar is the first completed office building in the £300m regeneration scheme being delivered by Urbo Regeneration and Sheffield City Council in partnership with Peveril Securities and is backed by Legal & General, which has committed £150m to the first phase.
The wider development, which is located between Castlegate and Kelham Island, will deliver more than 1m sq ft of mixed-use space, including Grade A offices, 368 build-to-rent homes, and a further 550,000 sq ft of office accommodation in subsequent phases. Legal & General is set to fund a second 100,000 sq ft office building at the site.
Tom Hunt, leader of Sheffield City Council, said: “This is a significant announcement for Sheffield and a major step forward in the ongoing regeneration of West Bar. Derelict brownfield land has been replaced by high-quality offices and homes connected to the city centre, Castlegate and Kelham Island. We are delighted that the Department for Work and Pensions will be moving to West Bar. This is a clear commitment by the government to invest in Sheffield and work with us to grow our economy and create new opportunities for our residents.
“We are proud that many government departments are located in the city and this new deal will further strengthen the work and growing reputation of the Sheffield Policy Campus. We will continue our work with the government and businesses to create new job opportunities in Sheffield. Across the city we are working to bring empty land back into use, create new jobs and make Sheffield the best place to live and work. Building on this deal, we will work with our partners to continue the successful regeneration of West Bar.”
Andrew Western, minister for transformation, added: “Moving to West Bar is a really exciting moment for us. This isn’t just a change of address – it’s about bringing our teams together in a modern, sustainable workspace that’s fit for the future. Consolidating from two older buildings into this new office will mean we can play our part in a city that’s growing and thriving by contributing to the local economy through providing job opportunities and stimulating local businesses.”
Ben Rodgers, head of regeneration at L&G, said: “West Bar is one of L&G’s flagship regeneration schemes which demonstrates the impact which long-term investment can have in supporting jobs, attracting employers and strengthening local economies. As one of the UK’s leading investors in real assets, we recognise the jobs and homes delivered at West Bar are vital to creating balanced, vibrant communities and provide long term sustainable economic growth opportunities for the city. We will continue to work closely with Sheffield City Council and Urbo to drive forward the next phases of West Bar, delivering our shared long-term ambition to create a thriving new urban quarter.”
Guy Cooke, senior director, agency and Development at BNP Paribas Real Estate, which advised the development partners on the letting, added: “Securing a letting of this scale is a major statement for Sheffield’s office market and underlines the strength of demand for high-quality, well-located Grade A space. West Bar is one of the most important regeneration projects in the UK, and this deal demonstrates the confidence that major occupiers such as DWP have in the city’s long-term growth story.
“As lead letting agent, we are proud to have supported Sheffield City Council and the development partners in delivering this milestone transaction, which will act as a catalyst for further inward investment at West Bar.”
JLL acted on behalf of the DWP.
