Highcross buys property quartet for £9m

PROPERTY fund manager and developer Highcross has acquired a portfolio of four regional office buildings located in Yorkshire and the North West in a £9m deal.

The deals for the buildings in Hull, Leeds, Sheffield and Preston reflect a net initial yield of 12.53%.
 
The portfolio totals 118,806 sq ft and is let to 27 tenants including Hewlett Packard, Lloyds Banking Group, Big Lottery Fund and Storeys SSP.
 
Midgery Court in Fulwood Business Park, Preston totals 48,708 sq ft across four buildings; the 21,402 sq ft Carlton Tower is located in Leeds city centre; Carbrook Business Park in Sheffield comprises 10,047 sq ft in close proximity to the Meadowhall shopping centre; whilst the 38,863 sq ft Marina Court in Hull is situated overlooking the city’s marina.

Highcross acquired the portfolio from Northern Britain Property Partners, which was advised by Ryden and Allsop.

Richard Pellatt, director of Highcross’ Northern office, said: “The purchase represented an opportunity to acquire a quality office portfolio with a diverse regional spread and strong mix of tenants.

“The prime locations and building flexibility offer excellent opportunities for increasing occupancy and enhancing asset values.

“With over £200m of equity available for new purchases, we remain keen to acquire properties in established regional locations which provide active asset management angles.”

Matthew Edwards, regional managing partner of Ryden in Leeds, said: “The sale to Highcross confirms there is still demand for good quality property with genuine asset management opportunities.

“The properties were marketed individually and as a portfolio and generated a good level of interest from investors. Highcross’ track record and ability to perform were key reasons in the vendor’s decision to sell the portfolio to them.”