Investors buy £23.7m Leeds office building

A LANDMARK Leeds office building has been snapped up in an off-market deal.

The grade II-listed St Paul’s House in central Leeds has been bought by EPIC UK from Boultbee Brooks Real Estate in a deal advised by Knight Frank, who remain letting agents for the building. It shows an initial yield of 6%.

The 19th century building overlooking Park Square has undergone major renovations to restore it.

St Paul’s House was built in 1878 as a cloth-cutting works and warehouse for Sir John Barran, and the interior was redesigned in 1976. It was bought by Boultbee Brooks in 2014.

Tenants now include Cushman Wakefield, DAC Beachcroft and Quality Care Commission.

The ground floor and third floor, totalling 20,000 sq ft are available to let, with rents in the region of £26 per sq ft.

Graham Foxton, investment partner with Knight Frank, commented: “Whilst we are passionate about all of the properties we deal with and the clients we act for, this is a very romantic story as it is an important chapter in this building’s proud history. It is also a graphic illustration of how Leeds is becoming ever more attractive to investors from across the UK.

“EPIC have been looking for the right asset in Leeds for some time and already own commercial property in Birmingham, Manchester, Bristol and London and other regional cities.”

Michael Elghanayan of EPIC UK said: “Following its extensive and sensitive refurbishment, we believe St Paul’s House is a very attractive investment, given its superb location, excellent facilities, including parking, and impressive occupiers.” 

James Whitcher at BBRE added: “The disposal to EPIC has allowed us to achieve a very attractive return on our investment that was not only ahead of business plan but also fully justifies the speculative costs we incurred in the comprehensive refurbishment of the property.”

Eamon Fox, partner and head of office agency at Knight Frank in Leeds, commented: “Never have I been more relaxed about the letting prospects of an office building. St Paul’s House captures the best in workplace design, but with an interesting history and an abundance of public realm in the form of Park Square.

“We are on business plan to deliver an early deal for EPIC UK with current interest from occupiers within the private wealth, media and insurance sectors showing an interest in the limited vacant space.”