£10m office project boosts the market

Harrogate-based Wilton Developments has started work on its 10m re-development of 10 South Parade, one of the first Grade A office projects to come to market in Yorkshire this year.

Most speculative work ground to a halt when the UK economy went into recession in 2008.

Jason Stowe, the managing director of Wilton Developments, said: "In the context of the current market, the development of 10 South Parade reflects our confidence and commitment to Leeds.

"The building will undergo an extensive re-development programme, effectively creating a new building."

When work is completed, 10 South Parade will provide 36,000 sq ft of accommodation.

Mr Stowe said the development had already attracted a number of potential tenants.

Planning permission has been secured to transform the outside of the building. The work will include a re-positioning and improvement of the entrance area, the enlargement of the first floor and the addition of a glazed top floor with balconies.

Stainforth Construction has been appointed to carry out the re-development and is now on site with work expected to be completed by autumn 2010.

Mr Stowe said: "Our aspiration for 10 South Parade is to create an office environment of the very highest standard while ensuring that it provides efficient and flexible accommodation to exceed tenants' requirements."

WSB Property Consultants, DTZ and Knight Frank are the agents for the development, which will include basement parking, a secure cycle store and "sporting club quality" male and female changing rooms with showers.

Robin Beagley of WSB added: "This is a significant landmark development for Leeds and is a reflection that we are starting to see signs of improvement in sentiment from businesses in the city."

He added: "10 South Parade will plug a gap in the market for Grade A office space with the flexibility to appeal to a wide range of potential occupiers."

Guy Cooke, at Knight Frank, added: "Wilton's decision to undertake the speculative development of 10 South Parade is great news for the Leeds market."

There have been fears that the Yorkshire property market will have a subdued year as the economy struggles to grow.

A recent report from GVA Grimley warned that the region's property market will recover at a far slower rate than the south of England. It was also feared that lack of finance and muted occupier demand will prove to be barriers to revival in 2010.

Property professionals will be hoping that the 10 South Parade scheme is the first of many.

Wilton Developments was set up in 2004 to invest and develop commercial and residential property in the north of England. It is based in Harrogate, North Yorkshire.

The company is involved in schemes in Greater Manchester, North Yorkshire, West Yorkshire, South Yorkshire and the North East.

Recently, an unsolicited offer prompted Wilton Developments to sell a 280,000 sq ft warehouse within Wakefield Europort in a 16m deal.

The transaction was carried out by Wilton on behalf of a managed private property investment company.

The offer was made by property agent Knight Frank acting on behalf of its client Rutley Capital Partners.

The warehouse is leased to KN Drinks Logistics, the specialist drinks distribution division of Kuehne + Nagel, until 2017.

SITE HISTORY

10 South Parade in Leeds was built in 1972 and was originally occupied by Crusader Insurance Company.

Throughout its 38-year history, the building has undergone several minor refurbishments.

The latest work will be carried out by Wilton Developments and is the most substantial since the building's construction.