A landmark building in the heart of Leeds’ financial district has been sold for almost £80m in the city’s largest office deal for more than five years.
Ashtrom Properties UK has acquired Central Square, which is home to the likes of M&S, PwC an Sky, for £78m.
Central Square comprises 217,249 sq ft of office accommodation across 11 upper floors above 13,126 sq ft of retail, restaurant and ground floor leisure units.
Located off Wellington Street and Whitehall Road, Central Square’s tenants also include RSM UK Management, Freeths, GXO Logistics, Sanderson Weatherall and BDO Services.
Guy Lewinsohn, CEO of Ashtrom Properties UK, said: “We remain committed to strategically investing in the UK’s regional markets, confident they offer substantial opportunities for sustainable growth and long-term value creation.
“The successful acquisition of this prominent building in the heart of Leeds marks a significant step in our ongoing commitment to invest in the future of the UK’s regional city centres, which we believe are poised for strong growth.
“I would like to extend sincere appreciation to the vendor for their professionalism and collaboration throughout this process, which ensured a smooth and mutually beneficial transaction.
“A special thanks goes to our in-house team, whose dedication and expertise were instrumental in driving this acquisition forward. Their commitment, along with the support of our external partners, guided us to a successful outcome.”
Read more
Leeds-upon-Thames? How the West Yorkshire heartland is luring British institutions away from London
‘One of the best regional assets outside London’
CBRE and Knight Frank acted for Ashtrom Properties UK on the purchase. Savills acted on the sale.
Will Kennon, executive director, CBRE, added: “Central Square is one of the best regional office assets located outside of London.
“Leeds is experiencing significant growth across all metrics, and the office market is facing an acute shortage of prime office space which we believe will lead to continued strong rental growth over the next cycle.
“With the market facing continued development viability challenges, we consider this acquisition will deliver strong risk adjusted returns over both short and long term.
“We are delighted to have helped Ashtrom Properties UK secure this exceptional asset, to add to their strong UK office portfolio in line with its current strategy to invest in core regional cities.”
Henrie Westlake, head of the North, Knight Frank, said; “The acquisition of Central Square by Ashtrom Properties UK aligns with their strategic decision to selectively invest in the UK Office market.
“As a long term holder of assets, the strategy is driven primarily by the strong underlying market fundamentals that will drive rental growth for prime assets.
“Notwithstanding this, there is no question that a normalised market will see significant yield compression that will further validate this approach. This will almost certainly be viewed as the bellwether deal of this cycle.”