Former mill on market for £5.94m

A former mill which is home to IT outsourcing firm Civica UK is up for sale with a price tag of almost £6m.

Vanguard House, on Dewsbury Road in Leeds, which is owned by IM Properties, is on the market for offers over £5.94m, which reflects a net initial yield - the rent generated by a property expressed as a percentage of its valuation - of seven per cent.

The sale of the 28,235 sq ft building, which is near junction 3 of the M621, follows Civica’s decision to sign a new long-term lease until 2033.

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The former mill was refurbished in 2001 to create new offices and is fully let to IT services and software company Civica UK which established a national customer showcase centre within the building last year.

Over 200 staff are now based at the office.

Alex Whiting, senior director of capital markets at CBRE Leeds, which is marketing the building, said: “Vanguard House provides a rare opportunity for an investor to acquire an attractive and well-positioned property with the commitment and security of long-term income from a strong tenant. We expect to deal with enquiries from London-based and overseas investors.”

Investment in Yorkshire’s commercial property sector reached £354.83m in the third quarter of 2014 - a 91 per cent increase on the previous quarter and 18 per cent higher than in the same period last year, according to Lambert Smith Hampton.

IM Properties, Vanguard House landlord, was advised by CBRE on the new lease and Civica was advised by Ian Culverhouse & Co.