Building Briefs: £3.3m packaging deal; Lettings at Merrion; Parklane opens in Leeds; New health centres planned; and more

THE capital markets team at CB Richard Ellis in Leeds, acting on behalf of Threadneedle Property Investments, has sold the 80,000 sq ft Portola Packaging facility in Doncaster to a local investor for £3.3m.

The sale reflects a net initial yield of 10%. Gavin Black & Partners in Newcastle advised the purchaser.

Portola Packaging is the European Division of Portola Packaging Inc, one of the largest global manufacturers of tamper-evident plastic closures, plastic containers, related equipment and engineering services for the dairy, juice and food industries.

The Doncaster facility is the worldwide group’s largest site and manufactures more than 4bn closures every year. The company’s operations will continue as normal under the facility’s new investment ownership.

Robin Bullas, associate director for capital markets at CB Richard Ellis in Leeds, said: “This sale presented a good investment opportunity for the local investor. We are witnessing renewed confidence in the investment market throughout the region and this latest deal highlights the opportunities that are currently available within the marketplace.”

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TOWN Centre Securities, represented by international real estate advisor Savills, jointly with Brassington Rowan, has let two units at the Merrion Centre in Leeds to Cardzone and FX Currency Services respectively.

Trading as Paper Kisses, Cardzone has agreed a new 10-year lease and will pay an annual rent of £33,500. The unit totals 969 sq ft et over two floors. 

FX Currency, trading as Eurochange, has taken a unit totalling 155 sq ft on a 10-year lease. The annual rent will be £16,000.

Steve Henderson, associate director at Savills, comments: “The Merrion Centre in Leeds offers almost a million square feet of retail, leisure, office and car park accommodation and is the busiest shopping centre in the Leeds City Centre.”

Cardzone was advised by Fisher Hargreaves Proctor, while FX Currency Services was represented by Brasier Freeth.

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RESIDENTIAL property rental and sales specialist Parklane Properties has opened a new office in Leeds city centre following an increased demand for city rentals.   

Parklane said rental demand in the city centre was high and that the average letting was being agreed within 14 days of the property being marketed.

Phil Abson, lettings manager at Parklane, said: “We are excited to be able to locate ourselves in a prime spot in Leeds city centre. Our portfolio of properties in the city core is significant so it makes perfect sense to have an office on the doorstep for city dwellers.

“Rental prices dropped around 5% last year in Leeds city centre due to the oversupply from the deteriorating sales market, however, prices have stabilised again this year. 

“The decrease in interest rates are allowing greater flexibility in negotiating deals with tenants and ensuring minimal rental void periods, thus alleviating the tough conditions experienced last year by landlords.”

Parklane is relocating its Chapel Allerton function to the city centre branch whilst keeping its base in Headingley.

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NATIONAL design practice P+HS has received planning approval for two new health centres in South Yorkshire.

P+HS has been granted planning for two new joint service centres in Hoyland and Athersley on behalf of Barnsley Community Solutions, an NHS LIFT partnership company.

Both schemes aim to deliver real benefit to the local community and form part of a wider regeneration strategy for each locality.

The new centre at Hoyland will enhance community facilities by bringing together library and social services, meeting rooms and community learning spaces, with GP and Primary Care services for Barnsley PCT.

A similar scheme at Athersley/New Lodge will provide modern and welcoming GP and PCT facilities to improve patient services within the community.

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YORKSHIRE developer Sterling Capitol and national hotel group Village Hotels have donated £50,000 to transform the Hesketh Lane playground in Morley into a safe and modern facility for the local community.

The money has enabled the run-down playground to be completely redeveloped.

The playground itself is now located to a more central part of the recreational ground, which has reduced the impact on those living close by and improved access.

Overall, the new playground has cost £140,000, with £90,000 coming from the Big Lottery Fund.

Martin Croxen, chief executive of Leeds-based Sterling Capitol, said: “As the developers of Capitol Park in Morley, we are always looking at ways in which we can support the local community.

“We are delighted that the Village Hotel South Leeds, based at Capitol Park, have supported us in this very worthwhile project. We are both proud to be in Morley and are committed to providing first-class recreational facilities where we can,” he added.

“This was an ideal opportunity to create a positive focal point for young people.”