Severn Trent Water is buying the former Citigroup building in Derby in the city’s largest occupier deal for more than a year.
The utility provider exchanged contracts on Tuesday with Citigroup to own and occupy the 120,000 sq ft building.
Severn Trent is believed to have paid circa £4m for the largely vacant PB4 building on Riverside Road in Derby’s Pride Park.
The deal marks the largest occupier move in Derby since call centre operator HERO.tsc took 141,000 sq ft from Citigroup at the neighbouring PB3 building at around £12 per sq ft in December 2011.
Severn Trent is expected to occupy 70,000 sq ft for its call centre operation and is likely to sell the remaining 50,000 sq ft.
The deal will see the utility firm relocate from its current 37,000 sq ft offices on Raynesway in Derby city centre.
Property manager Adam Tustain said: “This purchase allows us to keep our call centre and our employees in the city.”
The PB3 and PB4 buildings were originally developed by St Modwen for internet bank Egg, in 1998 and 2000 respectively. Citigroup acquired Egg from Prudential in 2007, but sold it in March 2011 to Barclays.
Lambert Smith Hampton advised Severn Trent; CBRE represented Citigroup.
lisa.pilkington@estatesgazette.com
