Orchard Street Investment Management has completed the acquisition of Debenhams department store in Leeds for £38m.
The specialist commercial property investment manager undertook the off-market transaction to buy 115-126 Briggate in Leeds city centre on behalf of St James’s Place UK.
The deal reflects a net initial yield of 5.58%.
The property is let in its entirety to Debenhams Retail on a 35-year lease with an unexpired term of 19 years.
It comprises a department store with a gross internal area of 111,824 sq ft over six floors, and produces a passing rent of £2.2m pa, subject to upward-only rent reviews every five years.
Tom Chadwick at Orchard Street, said: “This prime property is situated in one of the most sought-after locations in Leeds and is at the centre of an established shopping hub which should strengthen as the retail offering continues to improve.”
