Waterfront offices sold for more than £20m
ADAPT Real Estate, a UK regional asset manager, and Ship Street Advisors, a Hong Kong-based investment advisor, have acquired 3-4 Embankment in Leeds from XLB and Harbert for £20.5m.
The purchase reflects a 7.23% net initial yield. Savills advised the purchaser on the deal, which marks the first acquisition for the second UK Regional Office Partnership (UKRO II).
UKRO’s first partnership (UKRO I) was one of the most active investors in UK regional office markets in 2018/19, completing nine acquisitions across eight regional city centres, totalling about £95m.
The waterfront city centre office in Leeds is multi-let to a strong tenant line up including the NHS and Aon, with the two properties comprising a total of 71,713 sq ft of quality workspace.
The buildings provide two diverse styles of accommodation, with building three offering Grade A, flexible office space across six storeys and building four providing contemporary loft style space with exposed beams over five floors.
Located in the Sovereign Quarter of Leeds central business district, 3-4 Embankment is on the northern bank of the River Aire and is a short walk away from Leeds Railway Station and Trinity Leeds. Nearby occupiers include KPMG and Addleshaw Goddard.
Mark Wilson, investment director at Savills Leeds, said: “3 -4 Embankment offers high quality, well-located workspace in a highly attractive occupational market so this purchase marks an excellent acquisition for our client.”
Adam Fletcher, Partner at ADAPT Real Estate, said: “We are delighted to have acquired UKRO’s second major asset in Leeds.
“The city centre is like many in the UK and continues to see strong occupational demand for well specified, well located office space.
“We have already successfully improved and repositioned Park Row House in Leeds to target this market, and look forward to adding Embankment to our portfolio.
“Since founding ADAPT in 2009 we have demonstrated very clearly that we are capable of identifying investment opportunities and delivering benchmark-beating returns.”
Langham Hall are UKRO’s Jersey-based administrators, and UKRO’s advisors on the transaction included Savills, TLT and Mourants.
