A former engineering site on Leeds’ south bank has been sold to a private investor in one of the city’s largest commercial properties deals of the year.
The Round Foundry, a mixed-use site that is part of Holbeck Urban Village, was sold by Igloo Regeneration Partnership to the unnamed buyer for £31.5m.
The deal is another vote of confidence for Leeds, as regeneration continues in the city’s former industrial heartland.
It comes just weeks after Chancellor George Osborne visited China to promote investment opportunities in the UK, including redevelopment plans for the south bank of the River Aire.
The Round Foundry, based on Water Lane, is made up of new and listed buildings across a 5.65 acre site, including the Round Foundry Media Centre, Grade II*-listed former flax mill Marshalls Mill and Marshalls Court.
The sale comprised 155,811 sq ft of office, restaurant and residential space, reflecting a net initial yield of 7.98 per cent.
The site’s tenants include Welcome to Yorkshire, Elmwood Design, Simplicity Marketing, Bloom Media and Mediacom North, as well as seven food and drink retailers. Tenants will provide around £2.65m rental income each year. Leeds City Council accounts for 24 per cent of rent from the site.
Peter Connolly, head of development at Igloo Regeneration Fund, said he was proud of the “phenomenal success” the Round Foundry development has been.
He said: “The sale completes our business plan for a specific part of the development, but we want to emphasise that we remain active in the area.”
Knight Frank advised on the sale, which is thought to be the largest mixed-use deal in Leeds in 2015.
Rebecca Farnsworth, investment partner at Knight Frank in Leeds, said: “This is another excellent example of Igloo taking an area in need of regeneration and creating an innovative and desirable place to live and work while also providing excellent returns for their investors.”