Journalists at a regional daily are to move to a new HQ after their office was sold in a £3.6m deal.
Regional publisher Johnston Press has announced the sale of Telegraph House, home of Sheffield daily The Star, to property company Toscafield.
JP confirmed in February the premises on York Street, Sheffield, was up for sale, but said it was still considering refurbishing the property after previously deeming it “not up-to-scratch”.
Journalists working at the building, which currently houses are 400 staff and is also home of the weekly Sheffield Telegraph, will relocate to a new headquarters, although the location of this has not yet been announced.
Johnston Press launched a major programme of office sales in 2013 with the aim of raising around £8m.
Since then it has concluded a number of major sell-offs including the site of the former Peterborough Telegraph print works – now a housing estate – the former Northampton Chronicle and Echo building in Upper Mounts – now an Aldi superstore – and the former Yorkshire Post building in Leeds, which is being redeveloped as offices, shops and housing.
The announcement of the sale reads: “Johnston Press plc announces that it has signed an agreement for the sale of its freehold property Telegraph House in York Street, Sheffield (the ‘Sheffield property’) to Toscafield Property 2 Limited (the ‘disposal’).
“The total consideration receivable by the Company on completion of the Disposal is £3.6 million in cash, with no deferred element. Completion is expected to take place by 30 June 2017. The proceeds will be retained by the Company for working capital purposes.
“The Sheffield property is currently occupied by some of the company’s sales and editorial staff, who will remain in the building for a short transitional period before moving to new fit-for-purpose premises.
“The Sheffield property has a book value of £1.9 million and the Disposal will result in a gain on disposal of £1.7 million before fees.”