Fund manager beats London rivals to offices

The buildings are home to computer giant IBM, outsourcing firms Balfour Beatty and Mitie and retailer Republic.

Richard Corby, of agent Edward Symmons, confirmed CEG faced rival bids from London for the investment, which he said highlighted the national appeal of quality units with blue chip occupiers and a Leeds address.

He told the Yorkshire Post: “We have got a two-tier market in the UK, which is London and the rest.

“London is perhaps overheating for many investors who cannot find good value there. They are looking further afield.”

LaSalle Investment Management paid £22m for the Airedale Centre in Keighley in February in another example of funds looking for good value assets outside of London’s overheated commercial property market.

In December, New River Retail, a listed real estate investment trust, joined up with Pimco, the world’s biggest bond investor, to buy a clutch of secondary UK shopping centres, including Prospect Shopping Centre in Hull and Promenades in Bridlington.

Mr Corby described the three buildings at Thorpe Park as good stock in a prime location with a critical mass of occupiers.

They have a combined rental income of more than £1m.

Two German banks appointed Edward Symmons to act as receivers for 11 buildings at Thorpe Park.

The portfolio was previously owned by a fund manager which became distressed, said Mr Corby. Yesterday’s announcement completes the disposal of all buildings for a total of more than £15m.

The agent has sold three buildings to owner occupiers in recent months, including financial adviser Sovereign Wealth and energy drinks brand Boost, which each acquired a 4,100 sq ft building, and boiler specialist Help-Link UK, which bought a 10,000 sq ft building.

Last year, Edward Symmons sold buildings to engineer WS Atkins and Topland, the property investment company led by the billionaire Zakay brothers.

Mr Corby, a partner at Edward Symmons, is head of the Leeds office.

He said the property market is “fragile” and described a creeping lethargy in business activity during the year.

Mr Corby added: “We have had two or three weeks of Easter holiday.

“We are hoping now for a good April, May and June before we hit the slow summer.”

He said the business calendar has come to closely represent the school calendar with trading periods “getting shorter and shorter” and resembling three 10-week terms.

Before the downturn, August and Christmas and the New Year tended to be quiet periods, but now Easter lasts two or three weeks and summer holidays now stretch to two or three months, said Mr Corby.

He added: “People are looking for an excuse not to do something, which makes it hard to get momentum to do a deal.

“There always seems to be a hiatus that slows the process down.”

Commercial Estates Group, established in 1989, has offices in London, Harrogate and Cornwall.

The group’s UK portfolio extends throughout the country, totalling 9 million square feet and has a capital value of around £800m, rental income of £50m and an estimated rental value of £66m.

The group has a number of investments across Yorkshire.

@bernardginns