Hammerson has exchanged contracts to buy the Victoria Quarter in Leeds for £136m from Kennedy Wilson on behalf of Bank of Ireland Private Banking.
The retail REIT bought the site to complement its proposals for the first phase of the adjacent Eastgate Quarters.
The 210,000 sq ft Victoria Quarter is anchored by Harvey Nichols and includes 70 stores in total and two cafes.
It features listed arcades, split into two distinct shopping streets.
The County Arcade comprises 30 units and is homes to luxury retailers including Louis Vuitton, Mulberry, Vivienne Westwood and Oliver Sweeney.
Queen Victoria Street features 26 stores and the entrance to the Harvey Nichols department store.
The 100%-let Victoria Quarter also fronts Briggate, King Edward Street and Vicar Lane.
Passing rent is currently £7.2m and after taking into account costs the initial yield on the purchase is 5.25%.
Hammerson chief executive David Atkins said: “Our purchase of the Victoria Quarter is a further demonstration of our commitment to Leeds, following the announcement of our plans for Eastgate Quarters in July. Victoria Quarter is a retail landmark in Leeds, and our ownership of the scheme will help us to develop a comprehensive retail offer for Eastgate Quarters and expand the luxury and aspirational retail offer for the city.”
The 388,000 sq ft first phase of Hammerson’s Eastgate Quarters scheme will be anchored by a 260,000 sq ft John Lewis.
It will be accompanied by up to six restaurants, additional leisure space and a 600-space multi-storey car park.
A detailed planning application for Eastgate Quarters will be submitted in spring 2013 and work is anticipated to start on site in 2014, with the first phase complete in 2016.
Hammerson was advised on the transaction by DTZ, Strutt & Parker and Nabarro. Kennedy Wilson was advised by CBRE and Trowers & Hamlins.
jack.sidders@estatesgazette.com
