London's dominance will lessen as Leeds emerges as world class city, says Bridgewater Place owner

NORTHERN cities like Leeds will play a significant role in delivering economic growth in post-pandemic Britain because they offer a world class lifestyle with a lower cost base than London, according to one of Europe’s leading real estate professionals.
Bridgewater Place in LeedsBridgewater Place in Leeds
Bridgewater Place in Leeds

Richard Croft, the executive chairman of M7 Real Estate, the company which has signed a deal to buy Bridgewater Place, Yorkshire’s tallest building, for £84.5 million, delivered an upbeat assessment of Yorkshire’s economic prospects during a trip to Leeds.

Mr Croft told The Yorkshire Post: “London’s dominance will lessen and cities like Leeds will become more significant. People realise that they can be here for less cost.”

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He added: “Leeds is much more affordable than London. It has got a very large student population. A lot of these students will stay in the city and this creates a dynamic that can feed fast growing companies. Bridgewater Place is a world class building in a world class city.”

M7 Real Estate, which is a pan European investor and asset manager, has agreed to the acquisition of Bridgewater Place in Leeds ahead of a potential initial public offering of the property on the IPSX stock exchange.

Mr Croft said the future for office space was very sound, despite the growth in home working due to the pandemic.

He added: “People will look at costs and the quality of life.. The tenant line up in Bridgewater Place is fantastic already. There is great cash flow inside an iconic building in a city that will grow a lot.”

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The IPSX stock exchange is the world’s first exchange dedicated to commercial real estate assets. Completion of the acquisition is subject to a successful capital raise and the listing.

“My view is that people like real estate,’’ said Mr Croft. “But at the moment to buy real estate you have to be rich or a big corporate. The listing will allow the general public to invest in real estate in an entirely liquid way.

“They will be able to build a property portfolio that is hugely attractive. They will be able to buy shares in Bridgewater Place which will be only the second listing of its kind in history.

“It will be right at the forefront of financial innovation.”

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“This idea that we don’t need offices is nonsense,’’ he added. “If you are living in a two bedroom flat with kids and working on a dining room table or a 25-year-old in a one bedroom flat, working from home is not practical.

“I know that I’ve missed the office hugely,’’ said Mr Croft.”Almost all of my social life is connected with work and I believe that applies to a lot of the population. We won’t work from the same office space all the time. But we require space to collaborate and build friendships and relationships.”

M7 Real Estate Group is headquartered in London and employs 225 staff across 14 countries.

Mr Croft said: “M7 already owns a lot of buildings in Yorkshire, including a retail park in Wakefield and 30 to 40 other investments in the region. We are very committed to Yorkshire.”

Bridgewater Place includes 234,000 sq ft of grade A office space. Occupiers include professional services firm EY and multinational law firms DWF and Eversheds.

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