Landmark city centre office building sold for £14.5m
A 13-storey city centre office building which houses a government department has been sold for £14.5m.
A fund advised by Warwick Capital Partners LLP, represented by Savills, has sold Leeds office building Castle House to Bridges Property Alternatives Fund IV. The sale reflects a net initial yield of 9.32%.
Castle House provides 78,298 sq ft of headquarters office space over ground and 13 upper floors alongside 80 car parking spaces. The property is fully let to The Secretary of State for the Environment, with an unexpired lease term of 5.5 years.
There are several nearby developments to Castle House, including MEPC’s Wellington Place which will house the new Government Hub.
Simon Lister, investment director at Savills Leeds, said: “We are delighted to have secured a sale of Castle House on behalf of our clients. Investment levels into Leeds offices have been very strong in the first half of the year, with a total of £175m spent. We anticipate that this will be a record year for office investment in Leeds as investors seek enhanced returns underpinned by rental growth and the demand/supply dynamic within the city.”
Bridges Property Alternatives Fund IV is managed by Bridges Fund Management, a specialist sustainable and impact investor. Bridges typically invests in regeneration areas and niche sectors, looking to create financial value and positive impact through hands-on asset management and environmentally-led refurbishment.
Guy Bowden, partner at Bridges, added: “We know the commercial property market in Leeds well, having recently completed the sustainable refurbishment of 6EP on East Parade. We saw Castle House as a great opportunity to add to our portfolio of high-quality office space in central Leeds, which is much-needed by Government and SMEs alike.”
CBRE Leeds advised the purchaser.
Alex Whiting, Senior Director at CBRE, said: “Castle House is a landmark Leeds office located in an area of the city centre which is set to see significant investment over the next few years.”
