Office block sold for £14.38m

A CITY centre office building has been sold for £14.38m in one of the largest multi-let office investment transactions in Leeds in the last year.
By The Newsroom
Published 5th May 2011, 11:13 BST

Legal & General acquired 1 Whitehall Quay, which is close to Leeds train station, from Danmerc, reflecting a net initial yield – the rent generated by a property expressed as a percentage of its valuation – of 7.88 per cent. The 51,182 sq ft office building is let to consultancy firm Mercer and MWB Business Exchange Centres for a further six and a quarter years with a rent of £21 per sq ft.

Jones Lang LaSalle, which advised Legal & General, said the rent reflected a 20 per cent discount to prime rents in the city and offered Legal & General scope for future growth.

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Mathew Atkinson, associate director in Jones Lang LaSalle’s national investment team in Leeds, said: “1 Whitehall Quay represents an excellent opportunity to reposition the property through refurbishment at lease expiry and subsequently create one of the key grade A offices in Leeds city centre given its undoubted position within the prime core and proximity to the station.”

Knight Frank and MP2 were advisers for Dan-merc.

Related topics:Leeds