A PROPERTY company is splashing out a seven-figure sum on a Derby office building.

Exeid has bought Sitwell House, in Babington Lane, on behalf of a private equity partnership and has secured a blue-chip tenant on the strength of its refurbishment plans.

The Nottingham-based company has also entered into a management agreement with a landlord in the Cathedral Quarter to manage serviced offices in Friar Gate.

Exeid managing director Richard Priestly told the Derby Telegraph that these were the first of many investment projects in the city.

And negotiations are at an advanced stage with two further businesses interested in taking office space at Sitwell House, each looking to launch operations in the city centre.

Part of the refurbishment involves making the building greener. The new owners want to install solar panels and ground-source heat pumps.

Mr Priestly said: "We are looking to establish a presence in Derby and, looking forward five years, we see Babington Lane as being at the very heart of the city.

"The plan is to transform the building internally and externally, completely refurbish the reception area, install the latest IT technology and make it more efficient to bring it up to the latest specification.

"By the time we have finished, the freehold and the refurbishment work will represent an investment in excess of £1 million."

Sitwell House, on the corner of Sitwell Street and Babington Lane, is made up of ground floor retail units and 16,740 sq ft of office space.

It is currently home to a recruitment firm and an Army careers office.

Mr Priestly said: "Sitwell House is quite similar to a building in Fletcher Gate, in Nottingham, that was also seen as a secondary location until a few years ago.

"We have the top floor confirmed for a national blue-chip client that is upsizing its Derby operation and negotiations are in the final stages with two companies new to Derby who will take half of the third floor."

The first new tenant under Exeid's ownership is expected to have 10 to 15 employees but is expecting to expand and take on more people.

Exeid has also entered into an asset management agreement with local businessman Howard Thomas, owner of 32 Friar Gate.

Mr Priestly said: "It is a lovely building in an excellent location. We researched the serviced office market in Derby and found that there was a lack of very high-quality fully serviced offices in the area.

"Sitwell House and 32 Friar Gate represent our first investments in Derby and we hope they will be the first of many as we are already looking at other projects here.

"They are very different buildings but our strategy to provide high-quality space is the same."