Joint venture snaps up prime city centre office complex The Bourse in £7.4m deal

A HIGH-PROFILE office complex in the centre of Leeds has been bought by a joint venture for £7.4m following an 18-month receivership.

Ilkley-based property developer and investor Opus North and Palmer Capital joined forces to acquire The Bourse from LPA receivers.

The price paid for the mixed office and retail complex reflects a net initial yield – the rent generated by a property expressed as a percentage of its valuation – of 9.9 per cent.

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The Bourse, which is less than 100 yards from Leeds Station, comprises 50,000 sq ft of space over three buildings, overlooking a central courtyard. Its 20 tenants include office occupiers as well as award-winning restaurant Anthony’s restaurant, William Hill, Evans Cycles and two convenience food operators.

Each of the buildings, Equity House, Sterling House and Bond House, has its own designated entrance with an NCP multi-storey car park to the rear. There are a number of immediate asset management opportunities which Opus said it will target to improve value in the short term.

There is currently 4,000 sq ft of office space available on the second floor of Sterling House and 1,700 sq ft available on the first floor of Bond House, with agents quoting £17 per sq ft. There has already been strong interest in both vacant offices.

Andrew Duncan, managing director of Opus North, said: “We are delighted with the interest shown in the building since we purchased as it vindicates our decision to buy this very special office complex.

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“The Bourse is superbly located in the commercial and retail heart of Leeds and close to Yorkshire’s excellent motorway network, as well as next door to the station.”

He added: “On a personal note, I have fond memories of The Bourse, having had offices there with my former firm of property consultants Grenville Smith & Duncan in the 1990s and we were also the original letting agents for the building”.

The Bourse buildings were part of the Civitas portfolio that was first put on the market in August 2010 by Lloyds Banking Group.

Lloyds pushed the button to sell last year after Princeton Investments defaulted on the mortgage used to buy the Bourse for £15.2m originally.

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The Bourse is opposite the Oakgate Group site where a new food store will be completing in early 2012. It is also near the Trinity Leeds retail development, which is currently under construction.

DTZ Leeds office acted for Opus and Palmer, whilst Cushman & Wakefield acted for the LPA Receivers in the deal.

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