Michael and Steven Elghanayan’s EPIC UK has bought St Paul’s House in Leeds from Boultbee Brooks Real Estate for £23.7m – a net initial yield of 6%.
The 65,000 sq ft Grade II listed office building was purchased in an off-market deal, following BBRE’s extensive refurbishment and 24,000 sq ft letting to DAC Beachcroft.
Other occupiers include Cushman & Wakefield and the Care Quality Commission. Some 19,000 sq ft is available to let on the ground and third floors of the building, where quoting rents are around £26 per sq ft.
James Whitcher, asset manager at BBRE, said: “The disposal to EPIC has allowed us to achieve a very attractive return on our investment that was not only ahead of business plan but also fully justifies the speculative costs we incurred in the comprehensive refurbishment of the property.
“As with all our disposals, we will now look to opportunistically reinvest the proceeds of the sale into new projects as and when they arise.”
Michael Elghanayan said: “Following its extensive and sensitive refurbishment, we believe St Paul’s House is a very attractive investment, given its superb location, excellent facilities, including parking, and impressive occupiers.”
Aurum Real Estate advised BBRE; Knight Frank represented EPIC UK. Knight Frank has been retained as letting agent on the building.
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