Bruntwood cautious on landmark project
BRUNTWOOD is looking to secure pre-lets before starting the redevelopment of a Yorkshire city centre landmark building.
The firm secured planning permission for its overhaul of City House in Leeds in October but is looking to secure commitments from prospective tenants before going ahead.
Moves are also underway to link Bruntwood’s plans for City House with the wider redevelopment of the Leeds Station area.
Bruntwood chief executive Chris Oglesby told TheBusinessDesk.com: “There are significant fixed costs attached to carrying out building work directly above a station.”
The company is also looking for other office refurbishment opportunities, though, as it has let out all of its existing space.
“We had a big success in signing Premier Inn to Hepworth Point and 14 King St has done well,” said Mr Oglesby. “Leeds is such a tight city that the amount of office space is probably half that of Manchester and it doesn’t have some of the oversupply issues that other cities have.
“We’re actively looking for acquisitions in Leeds, and we’ve got a couple of sites identified at the moment.”
Mr Oglesby talked up the prospects for regional property markets such as Liverpool, Manchester and Leeds. He aruged they would benefit from “northshoring” by law firms as competition increases in the sector, and that there will be a general “pull from London” by entrepreneurial businesses as the City attracts more multinationals, making rents even more expensive.
“A recession is great for that – for making people think about their costs and for finding better ways of doing things,” he said.
