Leeds council has prelet 170,000 sq ft on a 25-year lease at Town Centre Securities’ Merrion House .
The largest deal in the city centre in more than 20 years will see the building undergo complete refurbishment and addition of a 50,000 sq ft, six-storey extension.
Council staff will vacate at least 13 buildings within the city to consolidate an additional 700 staff into Merrion House, bringing the total in occupation to 1,900.
The council will retain four city centre office buildings, releasing all its other holdings to bring in savings of more than £15m.
Leeds city council and Town Centre Securities both represented themselves in the deal.
Leeds city council leader Keith Wakefield said: “The newly integrated one-stop centre will enable us to offer better, easier access to a whole range of services to the public, all in a modern, state-of-the-art new building.”
“The improvements will also help with the drive to regenerate a key area of the city centre, complementing the First Direct arena and the Merrion Centre, and will help Leeds to continue to grow both economically and culturally, as well as assisting our ambition of becoming the best city in the UK.”
Town Centre Securities chief executive Edward Ziff said: “To be able to bring all the council operations together at Merrion House in what represents the largest city centre office deal in more than two decades, is another achievement for the Arena Quarter.
“With the continued investment into the Merrion Centre, the area is transforming itself into one of the city’s most important destinations and this latest deal is testament to that. We are looking forward to creating a superb new facility for the council to enable its long-term strategic goals.”
