Adapt Real Estate and Hong Kong-based Ship Street Advisors have bought 3-4 Embankment in Leeds from XLB and Harbert for £20.5m – a 7.23% net initial yield.
The deal is the first for the pair through their UK Regional Office Partnership II fund. The previous fund bought nine properties across eight regional cities for a total investment of £95m.
3-4 Embankment is multilet to tenants including the NHS and Aon. The two properties comprise a total of 71,713 sq ft of workspace.
Adam Fletcher, partner at Adapt, said: “Leeds city centre is like many in the UK and continues to see strong occupational demand for well-specified, well-located office space.
“We have already successfully improved and repositioned Park Row House in Leeds to target this market, and look forward to adding Embankment to our portfolio. Since founding Adapt in 2009 we have demonstrated very clearly that we are capable of identifying investment opportunities and delivering benchmark-beating returns.”
Savills advised the purchaser on the deal.
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