Agents pick most significant deals to end of October
Yorkshire House, Greek Street, Leeds
Type of deal Investment/development
Vendor Apia Regional Office Fund
Purchaser The FORE Partnership
Size 83,000 sq ft
Price £17m
Chosen by Elizabeth Ridler, partner office agency, Knight Frank (Leeds)
I am choosing the recent purchase, by The FORE Partnership, of this iconic building on Greek Street. The offices are set to undergo a substantial refurbishment to provide top quality space, specifically tailored to the needs of the TMT sector.
There is a call for centrally located, media-style character space to accommodate creative companies, which also offers flexible corporate space on the larger floorplates.
I think the demand from both businesses looking for TMT offices and investors looking to fund this kind of space makes this a very compelling opportunity. Yorkshire House is an outstanding building, which is situated in the heart of the city’s professional quarter.
This transaction – the latest in a number of high-profile acquisitions of quality buildings in Leeds – is another example of London investors being attracted to the strong fundamentals of regional property, especially in Yorkshire.
Great Eastern Way, Rotherham
Type of deal Forward funding
Developer Gregory Projects
Forward funder Bramall Properties
Tenants Aldi, Iceland and Home Bargains
Size 50,000 sq ft retail development
Rent circa £520,000 pa
Chosen by Richard Padley, retail director, GVA (Yorkshire)
This deal is a positive example of the renewed confidence in the retail market across the region, especially in South Yorkshire.
Having lain empty for more than three years, the site was purchased by Gregory Projects. A significant number of prelets followed, namely to Aldi, Home Bargains and Iceland. Due to the strength of this tenant line-up, forward funding was then quickly achieved from Bramall Properties.
It is extremely positive to see all parties work innovatively to make this scheme a reality. The fact that it is 95% prelet is testament to the strength of the location but was also a major factor in funding being secured so early in the development’s process. I consider that forward-funding element as being a key factor in helping the scheme to achieve lift-off.
I’m sure this development will now provide a fillip to Rotherham and the surrounding area, helping to increase footfall and, no doubt, further investment.
The Beacon, Clive Sullivan Way, Hull
Type of deal Leasing
Developer Horncastle Group
Tenant Interbulk
Size 10, 476 sq ft (Office 2)
Rent Confidential
Chosen by Jeff Pearey, lead director,JLL (North East)
My choice of top deal for the region is Interbulk’s agreement, in September, to take space at Horncastle Group’s Hull office scheme, The Beacon. The company took the whole of the speculatively developed three-storey Office 2 building prior to practical completion.
Horncastle bought the site, at the western gateway into Hull, in 2006, but the downturn meant construction did not commence until 2012, following EU grant funding.
It was on the back of a January presale of the Office 1 building to City Health Care Partnership that Horncastle took the decision to speculatively build Office 2.
Few property agents expect to see speculative office development anywhere but Leeds. However, I believe the Interbulk deal, and similarly CHCP’s, are testament to renewed confidence in property and construction and a sign of improving occupier demand in Hull.
As a result, Horncastle is now speculatively building Office 3 and plans to complete the scheme, with Office 4 being finalised in 2015.
Hermes and CPPIB in jv
A 50% stake in Leeds’ 1.5m sq ft Wellington Place development was purchased by Hermes RE and Canada Pension Plan Investment Board in a new regional jv – committing £185m between them.
Don Valley gets ball rolling
Plans were unveiled for a redevelopment of Sheffield’s former Don Valley stadium. Renamed the Olympic Legacy Park, it would feature research facilities, a new stadium, hotel and school facilities.
New era for Sheffield
A consortium of Chinese investors submitted plans for a £65m mixed-use tower – New Era Square – in Sheffield city centre, comprising 20 storeys of commercial, residential and leisure space.
York Central back on track
City of York council and Network Rail announced they were resurrecting, in a slimmed down form, plans for the York Central homes and offices development
Tritax does double
Tritax Big Box REIT bought The Range’s UK national distribution centre at Nimbus Park in Doncaster for £48.5m. The deal followed hot on the heels of its £12.2m purchase of the Wolseley regional distribution centre in Ripon.
Majestyk plans extinguished
In Leeds, the former Majestyk nightclub, which was being marketed for leisure use by Rushbond following refurbishment, suffered severe damage in a fire.
EG gauges the trials and tribulations of the Yorkshire property market
