RBS has selected Commercial Estates Group as preferred bidder for a swathe of prime development land earmarked for a £500m scheme on Leeds’ South Bank.
The developer is close to finalising a £10m deal to take control of seven hotly contested sites, covering six acres, at the heart of Holbeck Urban Village between Globe Road and Water Lane.
The sites have a variety of consents. The largest is for a £250m scheme comprising 250,000 sq ft of offices and 432 flats.
In August, RBS appointed Indigo Planning to evaluate new plans for up to 500,000 sq ft of offices and shops in buildings of up to 10 storeys, along with between 700 and 1,000 flats.
CEG is expected to pursue those plans.
EMCO Estates Holdings originally assembled the site, financed by RBS, before it was bought by the bank’s West Register unit in 2009.
A source said: “The Holbeck portfolio has the potential to be one of Yorkshire’s most significant commercial sites, and could be the central focus of the HS2-led regeneration of the South Bank.
“If CEG closes the deal, it will give the company huge influence over Leeds.”
CEG also controls the nearby £400m Kirkstall Forge project, with first-phase plans for a 1,000-home project with office elements soon to be submitted.
Gent Visick and Sanderson Weatherall advised the vendor. CEG was unrepresented.
The deal comes as St James Securities has instructed CBRE to seek offers of over £6m for the adjacent 7.5-acre Sweet Street West, which has consent for 830 flats and 250,000 sq ft of offices.
chris.berkin@estatesgazette.com
