£15m deal for city centre Capita office

HEPWORTH House in Leeds city centre has been bought by Aviva Investors for £15m.

The 100,000 sq ft call centre building, currently occupied by FTSE 100 company Capita, was bought on behalf of Aviva by Colliers International, reflecting a yield of 7.53%.

The building is located opposite the new Leeds Arena and adjoins the Premier Inn hotel and is the first time the building has been bought or sold since it was built 113 years ago.

Richard Walsh, of Colliers International, said: “Capita is an undoubted covenant and we have the business in place for a further 14 years as tenant. This building is some 22 stories lower than its neighbouring hotel and student residential properties, thus making for an interesting development angle into the future.

“The arena opposite has already started to bring the office, leisure and retail core towards Hepworth House and long may it continue. This acquisition proves that the regions are alive and kicking for the right asset, tenant and lease.”

Hepworth House was one of the original buildings for Hepworth’s which eventually became Next.

Cushman and Wakefield sold the asset on behalf of Next.