Debenhams’ city store gets a new owner

Gatehouse Bank bought the 107,000 sq ft building for £33.4m from accountancy firm KPMG, receiver to a failed Irish property company.

The deal represents a net initial yield of 6.35 per cent.

Gatehouse complies with the moral and religious laws of Islam. Founded in 2009, the London bank’s main backer is the Kuwait Investment Authority.

Scott Nicol, vice president of real estate at Gatehouse Bank, said: “The property is in a particularly desirable area of the city centre, where both retail and real estate fundamentals are extremely strong.

“Major shopping centres such as Leeds are continuing to see high levels of demand, even in the face of a wider economic slowdown, and the prime retail market has remained remarkably resilient.

“These factors are all key for investors searching for high quality assets, and the Debenhams acquisition typifies our strategy of purchasing long income properties with well-established tenants and which deliver an attractive yield.”

The acquisition also represents the bank’s first move into the retail sector. But Gatehouse is not new to Leeds; it bought the BT building in Sovereign Street for £40m in 2010.

Adam Cavanagh, head of real estate, told the Yorkshire Post: “We see good value and good opportunities across the country.

“Our investors understand Leeds and how it works. Part of the story has already been told.

“What they are really looking for is wealth preservation in a world where there is a lot of uncertainty.

“They are looking for solid investments. They understand Debenhams as a tenant and a brand and they understand Leeds as a city.”

KPMG was appointed administrator to Wildrose Properties Ltd in March this year.

The company is wholly owned by the Eastwood Discretionary Trust, the family trust of bookmaker Barney Eastwood, a former boxing promoter.

A report by KPMG said the company had debts of more than £80m.