Legal & General is investing £150m (€172m) in the first phase of a mixed-use project in Sheffield.
Legal & General said it has partnered with Sheffield City Council and Urbo West Bar – a joint venture between Urbo Regeneration and Peveril Securities (the development arm of the Bowmer and Kirkland Group – to develop the West Bar Square scheme.
The West Bar Square development will comprise 200,000sqft of office space, 350 build-to-rent homes, a multi-storey car park and public spaces.
Legal & General has so far invested billions of pounds into urban regeneration projects across the UK. This includes partnerships with Local Authorities in Cardiff, Salford, Newcastle and Sunderland, as well as central government bodies such as Homes England and world leading universities.
Nigel Wilson, CEO of Legal & General, said: “This is not new territory for L&G. Our investment partnerships in cities such as Cardiff and Newcastle are already delivering at pace.
“Likewise our vision for West Bar Square is to deliver a much needed new quarter for the centre of Sheffield.
“During these unprecedented times, it is absolutely imperative that institutions continue to push forward with deals such as these, so we can position the UK for an accelerated recovery and lay the groundwork to support those most in need in society.”
Peter Swallow, managing director of Urbo Regeneration said: “This is a massively significant investment for Sheffield, and is a vote of confidence in the future of the City as a whole, particularly during the current climate.
“The funding partnership we have agreed with Legal and General will guarantee delivery of large scale regeneration in this important part of the City, linking the rapidly expanding Kelham Island district to the city centre.”
Ralph Jones, managing director of Peveril Securities and main board director of Bowmer & Kirkland, said: “We are delighted to enter into this exciting partnership as we look to support regional cities in emerging strongly post-crisis.
“We are already working with Legal & General on a similar major Government Hub office scheme in the Midlands and now they will also help us to deliver this market-leading development in Sheffield.”
Councillor Mazher Iqbal, Sheffield City Council cabinet member for business and investment, said: “Although I recognise it may not be at the forefront of everyone’s minds in these difficult and challenging times, it is really important that we don’t forget to invest in the future of our city and continue to support developments for when Sheffield emerges from the COVID-19 pandemic.”