Severn Trent Water is buying the former Citigroup’s building in Derby in the city’s largest occupier deal for more than a year.
The utility provider exchanged contracts on Tuesday with Citi 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 in Riverside Road on Derby’s Pride Park.
The deal is the largest in Derby since outsourcing 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 of space for its call centre operation and is likely to sell on the remaining 50,000 sq ft.
The move will see it consolidate its operations and relocate from its current 70,000 sq ft offices on Raynesway in Derby city centre.
The PB3 and PB4 buildings were originally constructed for internet bank Egg in 1998 and 2000 respectively.
Citigroup has now sold the Egg business it originally acquired from Prudential in 2007.
Lambert Smith Hampton advised Severn Trent; CBRE represented Citi Group.
All parties were unavailable for comment.
lisa.pilkington@estatesgazette.com
