Government building in Leeds up for sale for £16m
Castle House in Leeds, home to a government department, is up for sale for £16.4m.
The site is let to The Secretary of State for the Environment and occupied by HMRC at a passing rent of £1.44m. There are 6.75 years left on its lease.
Warwick Capital Partners, represented by Savills, is selling the building in a deal which reflects a net initial yield of 8.25%.
Castle House provides 78,298 sq ft of office space across 14 floors. It was built in the 1980s and was central to controversial plans by HMRC to close down 12 of its 13 regional centres back in 2015, consolidating operations into the one building.
Located on Lisbon Street in the West End area of Leeds, an extension of the city centre, Castle House is adjacent to the West One development and opposite Wellington Place.
The West End has attracted several high profile occupiers including PwC, Squire Patton Boggs, RSM Tenon and Equifax.
Simon Lister, investment director at Savills Leeds, said: “Castle House is let to a rock solid tenant off a very attractive passing rent, which benefits from an RPI uplift next year.
“The property’s strategic location and regular configuration also offer potential for medium term conversion to residential, student accommodation or hotel use, subject to necessary consents, making it a very desirable investment opportunity.”
