Leeds city centre’s tallest office tower snapped up in £65m deal
Pinnacle Leeds, the city centre’s tallest office tower, has been acquired for around £65m.
A Brockton Capital fund has bought the mixed-use retail, office and car park investment, directly opposite the Land Securities-owned Trinity Leeds Shopping Centre and bordering the city’s traditional office core, from a US-based private equity firm.
The asset comprises office accommodation, 15 retail units with double-frontage along Bond Street and Albion Street, and a 388-space, multi-storey car park leased to Q-Park.
The yield on the deal, the largest investment transaction in Leeds so far this year, is 6.5%.
James Spencer, vice president at Brockton Capital, London-based investment adviser to the acquiring fund, said: “We are delighted to have agreed this exciting acquisition, which fits with our strategy of investing in significant and improving destinations in major regional cities. Leeds has a vibrant culture; a young and growing population; and a thriving economy, and its retail and office sectors are prospering as a result.
“The Pinnacle provides an opportunity to add significant value through revitalising the local area and curating the right mix of retail and leisure through further asset repositioning and lease-up. The landmark 15-storey offices offer fantastic views over the city and will be improved to provide contemporary, flexible workspace.”
Will Lund, investment specialist with global property consultancy Knight Frank, who advised Brockton Capital, commented: “This deal is a resounding endorsement of the central Leeds commercial property market and provides a timely boost to the city’s increasingly strong economy.”
Eamon Fox, partner and head of Knight Frank’s office agency team in Leeds, said: “This is tremendous news for Leeds and we will work closely with Brockton Capital to create office space capable of accommodating additional jobs in The Pinnacle.
“This landmark building has recently undergone a comprehensive refurbishment and offers high quality, flexible and open-plan office space boasting panoramic views from the city’s tallest office block. The Pinnacle is also surrounded by many of the city’s finest bars, restaurants and high street retail stores, making it ideally placed to attract and retain the best talent.”
CMS and Knight Frank advised Brockton Capital, DWF and Savills advised the seller on the transaction.