A property investment firm has sold a city centre office building to a financial services business for £3.05m following refurbishment.
Addington Capital, based in London, sold Aireside House, a 9,500 sq ft office building behind Leeds train station, to Wesleyan Assurance Group. The building was fully occupied and the sale equates to a 6.66 per cent net initial yield.
Addington acquired the building in a £42m mixed-use portfolio with its joint venture partners and has since completely refurbished it into a modern office environment over four floors, with cycle storage and shower facilities added as part of the renovation.
Phil Symonds, of Addington Capital, said: “This is an excellent example of what Addington is best at - buying and re-working old, under-utilised buildings to develop a contemporary renovated office environment well suited to the local market in terms of location, floorplate size and, in particular, specification and finish.
“The Leeds office market has performed very well lately, with strong occupier demand across the size and specification ranges, alongside increasingly constrained supply.”
Agents on the deal were Cushman & Wakefield for Addington Capital and Lambert Smith Hampton for the Wesleyan Assurance Group.
Addington owns several buildings in Leeds, including the former Elbow Rooms on Call Lane, which it bought out of receivership in 2016 and turned into offices.
Earlier this week, digital agency Parallax agreed a deal for 4,500 sq ft of office space on the third floor of the 24,000 sq ft building at a rent of £24 per sq ft. The basement, ground floor and first floor are let to Revolution de Cuba.