Hong Kong investor snaps up Leeds office for £20.5m
Ship Street Advisors and Adapt Real Estate, the UK regional asset manager, acquired 3-4 Embankment in Leeds from XLB and Harbert. The deal is the first for the pair through their UK Regional Office Partnership II (UKRO II) fund.
The price reflected a 7.23 per cent net initial yield.
The waterfront office is multi- let to tenants including the NHS and Aon, and comprises 71,713 sq ft of workspace.
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Mark Wilson, investment director at Savills Leeds, who advised the purchaser, said: “3-4 Embankment offers high quality, well-located workspace in a highly attractive occupational market so this purchase marks an excellent acquisition for our client.”
Under UKRO’s first partnership (UKRO I), the two firms completed nine acquisitions across eight regional city centres, totalling circa £95m in 2018/19.
Adam Fletcher, partner at Adapt Real Estate, said: “We are delighted to have acquired UKRO’s second major asset in Leeds.
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Hide Ad“The city centre is like many in the UK and continues to see strong occupational demand for well specified, well located office space.”
He added: “We have already successfully improved and repositioned Park Row House in Leeds to target this market, and look forward to adding Embankment to our portfolio. Since founding ADAPT in 2009 we have demonstrated very clearly that we are capable of identifying investment opportunities and delivering benchmark-beating returns.”