Knightsbridge of the North goes on sale for £135m

The owner of the Victoria Quarter in Leeds has put the shopping centre up for sale with a price tag of £135m.

Bank of Ireland Private Banking, which bought the centre for £126m in 2006, is understood to be looking for buyers for the grade two-listed shopping centre and has sent the details to a handful of investors. Potential buyers are believed to include ING, Hammerson, Meyer Bergman and a Malaysian investor.

Victoria Quarter, dubbed the Knightsbridge of the North because of its range of upmarket stores, is anchored by Harvey Nichols.

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Other tenants in the centre include Mulberry, LK Bennett, and Whistles.

The 217,754 sq ft scheme is being sold ahead of the opening of the 1m sq ft Trinity Leeds shopping centre in 2013, which some people believe could have an impact on lettings within the Victoria Quarter.

One Leeds property professional said: “Bank of Ireland feels it has got to the point where it can get out of the scheme and make some money rather than leaving it and risk losing money once Trinity Leeds opens. It’s a good time to sell.”

However, another person close to the deal said: “It’s been talked about as a fire sale but that is definitely not the case.”

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Bank of Ireland bought the Victoria Quarter from Highstone Estates, owned by entrepreneur Paul Sykes.

Mr Sykes more than doubled his money after buying the Victoria Quarter from Prudential for £47.5m in 2001.

The centre was built in the 1980s as an up-market retail destination after the once-vibrant Victorian arcade nose-dived into decay and became part of the poor end of town.

Bank of Ireland declined to comment.