Downing sells Broadcasting Place for £37.5m
LIVERPOOL-based property group Downing has sold Broadcasting Place in Leeds for £37.65m.
Aviva Plc has acquired the 111,000 sq ft commercial scheme, which is entirely let to Leeds Metropolitan University on a 22-year lease. The deal represents an initial yield of 5.85%.
Located on Woodhouse Lane and designed by architects Feilden Clegg Bradley, Broadcasting Place was completed in July 2009.
The development features teaching and office space and the buildings represent the largest capital investment in arts and humanities education in Leeds for a century.
They are now occupied by 300 staff and 4,000 students from Leeds Metropolitan University’s Faculty of Arts and Society.
Downing has retained ownership and management of the student accommodation element of the scheme, the 23-storey Broadcasting Tower, which contains 241 student residences.
It said the sale puts it in a strong position to expand its portfolio in 2010, following the £32.5m sale of the first phase of its Downing Plaza scheme in Newcastle.
Downing sold the 100,000 sq ft building, which has been pre-let by Newcastle University Business School, to Merchant Place Corporate Finance in November 2009.
Last month it also secured Liverpool’s largest ever commercial letting when the UK Border Agency took 220,000 sq ft at The Capital building in the city’s commercial district.
Paul Houghton, development director at Downing, said: “This strategic disposal marks the culmination of a very fruitful three months for Downing. It will allow us to build on the success of the UK Border Agency letting and the sale of Downing Plaza phase one, to move forward in 2010.
“There is no doubt that this will be another tough year for the industry. However, the successful conclusion of these deals means we are in a strong position to take advantage of the significant opportunities presented by changing market conditions.”
