The Heart of the City II development, designed to transform Sheffield City Centre, is to take another major step forward after the Council exchanged contracts for the sale of a key residential site within the masterplan.

The site is largely cleared and located at the corner of Rockingham Street and Wellington Street, close to Devonshire Green. Known as Block F in the Heart of the City II masterplan, it has been acquired by a joint venture company made up of Angelo Gordon and Ridgeback Group.

Angelo Gordon is a US based global investment advisor founded in 1988 which currently has approximately $32 billion of assets under management. They have significant experience in the Build-to-Rent sector, having owned and operated over 50,000 units in the USA and 5,000 in Europe.

Ridgeback Group is a UK focused residential investor and operator jointly owned by Duncan Walker, ex Investment Director at Helical plc, and George Bossom. This will be the joint venture’s first major Build-to-Rent development in the UK, with Sheffield seen as a forerunner to further investments.

More than 340 high quality homes – a mix of for rent and for sale – will be built in the development, which will be known as Kangaroo Works. The name is in recognition of a former tool factory which was part of the site in the early nineteenth century.

Sheffield contractor, Henry Boot Construction, has been appointed to carry out the construction works which will be designed by local architects, Whittam Cox. The development will be overseen by Brantingham Homes, a niche residential developer also based in Sheffield. A detailed planning application is to be submitted in the next few months and work could begin on site by the end of the year.

This latest announcement for Block F of Heart of the City II follows the recent planning applications for Blocks B and C, whilst Block D, a new purpose built 140,000sq ft office for HSBC with accompanying offices and retail, is rapidly nearing completion and the new Charter Square is due to open this spring.

Councillor Mazher Iqbal, Cabinet Member for Business and Investment at Sheffield City Council, said: “We are committed to developing a city centre that is a hub of high skill, high wage jobs and opportunities for the people of Sheffield and beyond that gives the people of Sheffield the vibrant and modern leisure, retail and social experiences that you would expect of a leading city the size of Sheffield, with new homes too.

“This is a great start to the new year and a fantastic vote of confidence in Sheffield. We  need  new homes of all types  and these high-quality homes for rent and for sale fits with our strategy of widening the mix in the city centre.”

Duncan Walker of Ridgeback Group said: “We are delighted to have secured this site in joint venture with Angelo Gordon for our first UK Build-to-Rent investment. We recognise that Sheffield has strong demand for high quality homes to rent as its economy continues to grow.”

Michael Crooks of Brantingham Homes, said: “I’m excited to be appointed on this project having watched the progress that has been made with the Heart of the City II scheme in recent years. This is a perfect location and we have assembled a first class local team to deliver a development that we and Sheffield can be proud of.”