£85m deal done for city centre mixed-use scheme

The largest investment deal in Leeds this year has been done by Revcap, who have purchased Broad Gate from Northwood Investors for around £85m.

The sale of the office on the Headrow which was valued by Northwood Investors at £90m and was one of Leeds city centre’s biggest available assets was put on hold last year “despite strong interest”.

It has been confirmed that the the city centre office which was formerly Lewis’s store before being transformed into a retail and office scheme in 2009 has been sold in an off market deal which is being quoted as one of the largest in the last 24 months for the city.

The building is almost fully let, with just a fifth floor suite of 12,674 sq ft listed as available. Its tenants include KPMG, Colliers International and Yorkshire Building Society, with the building reportedly generating a passing rent of more than £6.3m per year.

With an average rent of £23.50/sq ft, the deal offers rental uplift to prime Leeds office rents, which are currently over £30/sq ft.

The deal surpasses the value which Bridgewater Place secured, with the South Bank office currently being purchased by M7 for £84.5m ahead of a potential initial public offering of the property on the IPSX stock exchange.

Revcap is being advised by Colliers while Cushman & Wakefield and JLL acted on behalf of Northwood Investors, were all approached for comment but declined.

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