MIPIM 2012: Deal imminent for Bruntwood

BRUNTWOOD could complete a major deal to acquire a property in Leeds by the end of this week, the company’s chief executive has announced.

Delegates also heard that Leeds City Council’s executive board has agreed the principal terms of a new development agreement with Hammerson, the developer of the Eastgate Quarters scheme, that could bring forward the building of a John Lewis store on the site.

And funding for a £2.5m spine road that will help to open up and accelerate development of the Logic Leeds site of the Aire Valley enterprise zone in Leeds has also been agreed, delgates were told.

Speaking at MIPIM, the international property conference being held in Cannes this week, Chris Oglesby said the commercial property company was also on the look-out to acquire other premises in the West Yorkshire city.

Mr Oglesby said: “We’re about to announce a signifcant acquisition in Leeds. Hopefully we’ll be exchanging contracts on the acquisition by Friday.”

Mr Oglesby said he was not in a position to disclose the identity of the property but said Bruntwood was looking to refurbish it and make it available to tenants within a short timeframe.

Speaking at an event focusing on investment and development opportunities in Leeds city centre, Mr Oglesby said Bruntwood’s portfolio in the city was 99% occupied.

He said the Manchester-based company “would love to get involved” with Sovereign Street, the Leeds City Council-led project that is set to become home to KPMG in Yorkshire.

However, he added: “But whatever happens we see ourselves as active partners to make sure the scheme works.”

Bruntwood’s 390,000 sq ft portfolio in Leeds includes West One and 14 King Street. The company also owns City House above Leeds train station and Mr Oglesby called on tenants to come forward so Bruntwood could begin to modernise it.

Mr Oglesby said: “The acid test of the strength of a market is how it performs in difficult times and I’m pleased to say that the performance of properties such as Kings Street has given us great confidence in Leeds.

“Across our portfolio in the city we are 99% let. It’s a nice problem to have but we need more product and Bruntwood is looking to acquire new property in Leeds. We expect to make a major announcement about a new acquisition within the next week.”

Martin Farrington, director of city development at Leeds City Council, outlined some of the major opportunities within Leeds.

Mr Farrington said: “The Leeds Arena is having a catalytic effect on development in the northern quarter of the city, with Town Centre Securties, Mars Pension Fund and Bruntwood bringing forward development proposals on properties and sites surrounding the arena.”

He added: “In the out of town market, we are now in mature discussions on council-owned development sites at Thornes Farm, which will bring new occupiers to the Aire Valley Leeds enterprise zone. 

“The council’s executive board is giving formal approval for the Aire Valley enterprise zone, which goes live at the beginning of April, and it is agreeing funding for a £2.5m spine road that will open up and accelerate development of the Logic Leeds site on the scheme, with direct access to the East Leeds Link Road, the national motorway network and surrounding residential communities.”

John Flathers, partner and head of real estate at law firm Irwin Mitchell, told delegates: “As with any investment it is about what you are prepared to put in. For me, Leeds is a powerful city with a strong identity that has quietly been building its future growth. 

“Irwin Mitchell set up in Leeds in 1993 and has grown from a team of three to employ 225 people today with a turnover of £30m and 35,000 sq ft of offices at MEPC Wellington Place. 

“Leeds is a place that provides you with all the facilities needed to grow your business with, not just alongside the city.”

Leeds City Council’s executive board yesterday approved the amendments to the agreement with Hammerson after a report from officers said the changes were necessary to secure the involvement of  the development’s flagship store John Lewis.

The Leeds City Region MIPIM delegation is headed by Neil McLean, chairman of the Leeds City Region Local Enterprise Partnership (LEP).

The delegation is managed by Marketing Leeds and is supported by Muse Developments, Keyland and Evans Property Group, key landowners and developers within the Aire Valley Leeds enterprise zone, as well as law firms Addleshaw Goddard and Irwin Mitchell, who have travelled as ambassadors with the delegation.

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