Hope for market activity after decision

The two buildings are located next to one another at the northern end of the 22-acre Wellington Place site, which is being developed by MEPC in the West End of Leeds.

MEPC said it is unlikely to develop speculatively but added that receiving planning permission would enable it to develop the next phase of the scheme once the market picks up.

Number 3 Wellington Place will be prominently located at the junction of Wellington Street and Northern Street and will comprise 110,000 sq ft of office space with floor plates up to 19,500 sq ft.

The application for Number 10 Wellington Place includes plans for 35,000 sq ft of Grade A office space set over five floors with floor plates of up to 6,700 sq ft. There is an option of transforming the ground floor for retail or leisure use.

Andrew Barlow, managing director of Wellington Place, said: "We are pleased to have received planning permission for Number 3 and Number 10 Wellington Place. This demonstrates our commitment to the expansion of the site; however, we will be taking a long-term approach to construction and we are unlikely to be developing speculatively.

"This decision has been made to enable us to ensure the continued success of Wellington Place and to be in a position to develop the two Grade A office buildings when market conditions allow."

Number 7 Wellington Place, which also has detailed planning permission, is being marketed to prospective tenants.

MEPC developed two buildings at the 1.5m sq ft development before the recession but the rest of the scheme was put on hold.

So far this year, MEPC has let 25,000 sq ft of space at Number 2 Wellington Place and has just 14,590 sq ft remaining on the first floor of the 120,000 sq ft building.

Earlier this year, it sold 120,000 sq ft Benson House for 20m to free up capital within the group and fund further development for the scheme.

During the recession, the developer spent 1m turning part of the site into a "city centre resource" with urban gardens and a five-a-side football pitch.