Royal London Insurance and BT are developing a 10,130 sq m (109,000 sq ft) flagship office in Leeds city centre.
The four-storey BT Workstyle building will be at 1 Sovereign Street and will have an end value of around £32m.
Royal London will own the completed investment and freehold of the site. After construction, BT will lease the building at £199 per sq m (£18.50 per sq ft), plus £1,750 per car space.
Chris Oaks of BT’s property group said: “This investment in hugely flexible office space, together with the latest in communication technology, will enable very efficient and cost effective working.”
The telecommunications firm will consolidate a number of its operations into the new building, which will lead to the disposal of around 13,900 sq m (150,000 sq ft) in a number of other smaller multi-let buildings in the city centre.
Work will start on the cleared site in September, with completion due by the end of 2001.
BT was represented by Insignia Richard Ellis, while Royal London was advised by Knight Frank and DTZ Tie Leung.
EGi News 17/02/00
