Peterborough jobcentre sold in Â£6 million deal to private investor
A five storey building housing Peterborough's Jobcentre Plus has been sold to a private investor in a multi-million pound deal.
The investment company, which has not been named, has bought the five-storey Clifton House, in Broadway, and a linked threestorey building at 126-128 Park Road.
The cost of the purchase of what amounts to a total of 57,522 sq ft of office space has been put at £6.2 million.
It is understood the new owner plans to convert Clifton House, which covers 49,858 sq ft, into apartments under Permitted Development Rights, which allow such conversions to be carried out without planning approval from the local authority.
However, the 7,644 sq ft Park Road building is subject to a 10 year lease and cannot be converted.
The premises have been sold by CLS Holdings, which has also disposed of a property in Hamburg to a German real estate fund.
The sale of the Peterborough buildings has been overseen by city-based commercial agents Savills and Barker Storey Matthews (BSM).
Fredrik Widlund, chief executive of CLS, said: "I am very pleased that we have begun the year with the sale of these three, smaller properties.
"Consistent with our strategy, the disposal of these non-core assets will allow us to re-invest in properties where there is more scope for us to add value through active asset management."
Edward Gee, associate director at Savills, said: "Following significant interest in the property, we are delighted to have agreed this sale on behalf of our clients.”
Steve Hawkins, managing director at BSM, said: "Interest levels in office to residential conversions under Permitted Development Rights has soared in recent years.
"In excess of 600,000 sq ft of office space in Peterborough already has been or is in the process of being converted to apartments.”
The Department of Work and Pensions announced last year it hoped to move its Jobcentre plus offices into Peterborough Town Hall, in Bridge Street, to replace Peterborough City Council moves to new offices on the regenerated Fletton Quays site in Peterborough.