High Yielding, Long Let Industrial Investment

Garter Street | Sheffield | S4 7QX


subject to contract

Click To Purchase


  • New 10-year lease from July 2020, without breaks

  • Established tenant who has recently been subject to a management buyout, backed by an international investment group

  • Property has benefitted from a partial refurbishment in 2020

  • Established commercial location

  • Freehold

  • £1,500,000, subject to contract

  • Rent only £2.67 per sq ft / £28.69 per sq metre

  • 9.0% Net Initial Yield

  • Low capital value of £28.06 per sq ft / £302.05 per sq metres



Sheffield is England’s fifth largest city and the commercial, administrative and retail centre of South Yorkshire. The city is located 150 miles (240 km) north of London, 33 miles (53 km) south of Leeds and 38 miles (61 km) east of Manchester. The city benefits from a central location within the UK and is adjacent to the M1 Motorway.

Sheffield enjoys excellent communications to destinations within Yorkshire, together with other major towns and cities in the north of the UK. The city is served well by the national motorway network, with Junctions 31 to 34 of the M1 on the eastern fringe of the city, approximately 4 miles (6.5 km) from the city centre. The M1 provides direct access to key towns: to the north (Leeds, Barnsley and Wakefield) and to the south (Nottingham, Milton Keynes and London). In addition, the M18, accessed at Junction 32 of the M1 provides direct access to the Humberside Ports. Furthermore, the A57 and M67 provide access to Manchester, approximately 38 miles (61 km) to the west.

Sheffield railway station provides direct services to many UK cities with the approximate fastest journey times: London St Pancras 122 mins, Leeds 40 mins and Manchester 51 mins.

Sheffield will also be one of the key stations on the HS2 Northern Extension which encompasses Leeds, Manchester and an East Midlands hub between Nottingham and Derby. Manchester, East Midlands and Leeds-Bradford airports are located 47 miles (76 km), 53 miles (85 km) and 45 miles (72 km) away respectively. All provide a range of national, European and international services.

Sheffield has a strong financial presence with companies such as McLaren, Jaywing, Boeing, Sky Betting and Gaming, all recently making significant investments into the city. There is also a large public sector presence within Departments of Education & Skills, Work & Pensions and the Home Office being strong representations.

Sheffield is also a major education centre with the University of Sheffield and Sheffield Hallam University having approximately 60,000 students combined.


The property is accessed via Garter Street and is situated in an established commercial location with the surrounding area accommodating a variety of distribution, light industrial and heavy industrial uses. Nearby occupiers include Delicious Alchemy, Direct Special Metals, Ancon, Amazon, Royal Mail and UPS.

Sheffield City Centre is located approximately 3.2 km (2 miles) to the south-west and Meadowhall Shopping Centre is approximately 2.8 km (1.75 miles) to the north-east. Both these locations are accessed via the A6109.



The property comprises a detached industrial unit dating from the 1960’s which has been partly refurbished in 2020 (see below).

The property has three interconnecting bays (Bays 1-3) in addition to an adjoining single store office/ancillary element. The industrial unit is of steel framed construction with elevations a combination of brick and profile cladding, with an eaves height of approximately 8.8 metres (28.9 feet) to the underside of the haunch. The office/ancillary element extends along the south eastern elevation of Bay 3 with elevations of brick construction.

Bays 1 and 2 benefit from one level access loading bay to their north eastern elevations whilst Bay 3 provides three level access loading bays along its south eastern elevation.

The property has an EPC rating of “D”. A copy of the EPC is available to download.

Refurbishment Works

An external refurbishment of the buildings and car park / entrance was undertaken in 2020. A summary of the refurbishment works is outlined below and a copy of the specification is available to download.

• New cladding to Bays 1-3
• New gates and entrance onto Carwood Road with areas reinstated with C40 reinforced concrete for HGV turning, significantly enhancing access for HGVs and other vehicles
• Repairs to road surface and creation of 10 x new parking pays
• Widening of HGV turning area from 5 metres to 10 metres

In addition, a new modular office has been constructed. The unit is of steel framed construction with composite external elevations and double glazing. The internal specification includes suspended ceilings, LED lighting and comfort cooling. The specification and plans of the unit are available to download.


The property has been measured by BKR Floor Plans and provides the following Gross Internal Areas;

Office Building 2,393 sq ft 222.31 sq m
Main Building 51,063 sq ft 4,743.75 sq m
 Total 53,456 sq ft 4,966.06 sq m

A set of floor plans is available to download and the measured survey report will be re-addressed to a purchaser at a cost of £695 + VAT.


Rateable Value

Accommodation Rateable Value
Factory & Premises £58,500

The 2019/20 Uniform Business Rate is 50.4 pence per pound.


We estimate the site area to be approximately 1.28 hectares (3.15 acres).

An Environmental Report carried out by Arcadis EC Harris in August 2013 concluded that “The environmental sensitivity of the site is considered moderate ….the site is considered fit for continued industrial operations”. A copy of this report is available to download.

A Groundsure Siteguard Report dated January 2020 concludes that the Flood Risk is Low. A copy of this report is available to download.




The freeholder is obliged to keep in repair the overhead gantry used by the occupiers, this gantry over-hanging the adjoining land (see adjacent photograph). This would appear to relate to historic use of the subject site and the adjoining site. The gantry is used by the tenant, Paralloy Limited, who are required to maintain under their lease repairing obligations. There are similarly obligations to contribute towards the cost of maintaining the estate roads which again are passed onto Paralloy.


The property is let to Paralloy Limited on a full repairing and insuring lease (subject to a Schedule of Condition) for a term of 10 years from 24th July 2020, expiring on 23rd July 2030.

The current passing rent is £142,500 per annum which equates to £2.67 per sq ft / £28.69 per sq m. There is an upwards only rent review on 24th July 2025.



Paralloy has roots in the UK’s steel industry dating back to 1967 and specialises in transforming raw elements into products that power the petrochemical, ethylene and syngas industries. Paralloy primarily serves the synthetic natural gas and ethylene cracker petrochemical markets, manufacturing and fabricating specialist centrifugal castings. For further information visit www.paralloy.co.uk.

Up until December 2019 Paralloy, along with FVC, another leading manufacturer in the steel industry primarily serving the industrial gas turbine and aerospace industries, formed part of The Doncaster Group. The Doncaster Group is a leading international manufacturer of high-precision alloy components with 240 years of experience.

In December 2019 the Centrifugal Castings Division of The Doncaster Group, comprising Paralloy and FVC, was acquired by Nimbus, an international investment group. Nimbus backed Paralloy’s senior management team, led by chief executive Robert McGowan, to acquire the business, using its pan European footprint to support Paralloy and FVC’s growth and export plans. Arbuthnot Commercial ABL structured and delivered an £11.8 million asset-based lending transaction to support the acquisition. The statement on the company website can be found here.

“This is good news for our business. We are delighted to be working with Nimbus, we believe their background and expertise complements our strong management team and we have a partner that understands us, our business and is excited about the future.” Paralloy Chief Executive, Rober McGowean

The announcement by Nimbus can be viewed on the company website here .Nimbus has offices in Germany and the Netherlands, plus a UK base in Leeds. It specialises in investments into “industrial companies requiring both capital and management support”. For further information see www.nimbus.com and www.nimbus.com/en/our-companies/80/paralloy-fvc.

The most recent published accounts for Paralloy Limited (Co. No. 00260752), prior to the management buy-out in 2020, are as follows:

Year Ending 31st December 2018 31st December 2017
Turnover £29,741,000 £25,208,000
Pre-Tax Profits (Loss) (£1,397,000) £952,000
Net Assets £15,961,000 £17,583,000

The ultimate parent company is Nimbus Investment Fund IV Cooperatief UA.


The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).



We are instructed to seek offers in the region of £1,500,000, (One Million, Five Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 9.0% and a capital value of £28.06 per sq ft / £302.05 per sq metre, assuming purchaser’s costs of 6.10%.

Please note that no capital allowances are available.

Please also note that a purchaser will be re-charged the costs of the measured survey and searches which are provided in the data room.

Investment Considerations

  1. An opportunity to acquire a high yielding industrial investment;

  2. Let on a new 10-year lease from January 2020, without breaks;

  3. The property is let to an established tenant who has recently been the subject of a management buyout, backed by an international investment group;

  4. The property has benefitted from a partial refurbished in 2020;

  5. The property is situated in an established commercial location;

  6. A purchase at the asking price will provide an investor with an attractive net initial yield;

  7. A purchase at the asking price reflects a low capital value;

  8. An attractive lot size to an investor.


Data Room and clicktopurchase®

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Contact Us

Singer Vielle   +44 (0) 207 935 7200
Jon Skerry jon@singervielle.co.uk +44 (0) 203 995 6211
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356
Neil Singer neil@singervielle.co.uk +44 (0) 203 478 9120

Vendors Solicitor

Walker Morris   +44 (0) 113 283 2500
Clare Wood clare.wood@walkermorris.co.uk +44 (0) 113 399 1931