Joint venture partners, Sladen Estates and Peveril Securities, have bought a key site opposite Nottingham railway station for an undisclosed sum. The developers say they will now press ahead with plans to build up to 460,000 sq ft of offices on the land.
A previous £70m scheme was granted outline planning permission for the Unity Square site, but stalled during the recession. Following its acquisition from Peel Land and Property Group the partnership say the continued shortage of office space in the city is now driving the project’s revival.
Nottingham City Council last year granted permission for its then owners to demolish Sovereign House and build a Grade A office block, a four-star hotel and retail and leisure units around a newly created public square.
“Nottingham has made a strong economic recovery, but the challenge it faces is that the downturn halted new development,” commented Nick Sladen, of Sladen Estates. “This deal is proof that the city’s economy is growing, and that the lack of new office development in the city means the time was right to proceed with the project.
“We know the demand for space is out there, but professional occupiers looking for room to grow in the right location are struggling to find suitable accommodation in Nottingham.”
Sladen added: “The area around the railway station has undergone some substantial long-term investment, with the transformation of the railway station into a transport interchange and the exciting plans from intu for the redevelopment of intu Broadmarsh.
“Unity Square will put occupiers in the perfect place to take advantage of these investments, which is why we are delighted that Peel is passing the baton to us to push on with the scheme.”
The office scheme is being marketed by Nottingham property consultants FHP. Its director, John Proctor, said: “Unity Square has been a long time in the making and its delivery is a vital component of the regeneration of the southern gateway district of the city. It will bring much-needed new office space to a market which has been struggling to meet demand.
“When the existing buildings are demolished, we will start to see the potential for this scheme and start to fit the individual pieces of the jigsaw come together to deliver both a new business district and an environment around Nottingham’s transportation interchange which will genuinely provide the standard of environment that you would expect to see when arriving in one of the country’s most progressive provincial core cities.”
Commenting on the disposal, Peel’s development manager Richard Mawdsley, said: “Unity Square is an excellent scheme which is now well shaped to take advantage of the upturn in the regional office market.
“With the economic improvement, the delivery phase of a number of our strategic projects are all coming to life at exactly the same time and we are naturally having to focus resources on our strategic land holdings.
“We feel, however, that Sladen Estates and Peveril are the right team to take Unity Square forward now and we are confident they will realise our vision for Unity Square,” he added.
Long-time partners Sladen Estates and Peveril Securities have worked together to deliver a number of major developments since the turn of the century worth more than £300m.
