Two buildings sold for combined £14.5m

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A city centre office building and a distribution warehouse have been sold in two separate deals worth £14.5m.

Lisbon House on Wellington Street in Leeds, which is let to Bank of Scotland Group, was sold to Family Trust for £8.76m, representing a net initial yield - the rent generated by a property expressed as a percentage of its valuation - of 5.58 per cent.

The 26,600 sq ft building, which has 18 basement parking spaces, is occupied by Lloyds Banking Group on a lease expiring February 2024 of £517,500 per annum.

Jonathan Wade, director of Woolhouse Real Estate in Leeds, and Peter Lea and Co, based in Northampton, sold the building on behalf of Bunbury Holdings.

Meanwhile, a distribution warehouse at Cross Green Industrial Estate in Leeds, let to wholesaler Palmer and Harvey McLane, was sold to an overseas investor for £5.7m, representing a net initial yield of 6.19 per cent.

The building, which was owned by a private investor, has a lease expiring January 2024 at £373,365 per annum. Palmer and Harvey McLane supplies groceries, chilled and frozen foods, health and home products to supermarkets, forecourts and convenience stores.

Mr Wade, who advised on both deals, said: “Both deals demonstrate there is a strong appetite for quality investments let to excellent covenants and since start of 2014 prices have continued to rise. We expect there to remain a shortage of prime well let properties coming to the market and good prices been paid for the duration of this year.”