Private syndicate acquires two York assets in multi-million-pound deal

A York-based private syndicate has acquired two major assets in the city – the former Gas Works on Layerthorpe and Northern House on Rougier Street.

The former Gas Works is on a 7-acre site and the syndicate will convert it into a mixed-use development. The site was acquired for a sum in excess of £10m.

Northern House, located inside the city’s walls, was acquired for £13.3m, representing a net initial yield of 6.5%. It is opposite the Grand Hotel and proposed Malmaison and close to the city’s railway station. It is currently let to a number of tenants including Network Rail, Atkins and Grand Central.

The syndicate was represented by niche property investment specialists Steadman Brierley in Leeds. Director Jonathan Brierley said: “The Layerthorpe site is one of the only remaining major development opportunities available in central York, and interest has already been strong from potential occupiers.

“Northern House has been acquired as a longer term project with the intention to redevelop and upgrade the entire area to be in keeping with other neighbouring occupiers.

“In the meantime, it offers secure income with low passing rents and the potential for growth due to the lack of good quality office accommodation in the centre of York.”