Fund snaps up city centre offices for £8.7m

Adapt Real Estate, acting on behalf of UKRO, a Jersey domiciled fund, has acquired Park Row House in Leeds from a global real estate investment manager.

The price reflected a net initial yield - the rent generated by a property expressed as a percentage of its valuation - of 5.5 per cent.

The grade two listed Park Row House, which was designed by architect Alfred Waterhouse, dates back to 1920. It was rebuilt in 1989-90, retaining Waterhouse’s original 1894 Prudential Assurance frontage.

The design uses the same range of materials as those later employed for Greek Street Chambers. It is also believed to be the first building in Leeds to have had lifts.

Park Row House comprises 41,955 sq ft of office space. It was partially refurbished in 2013 and is currently let to six tenants including Search Consultancy, Charlton Morris and Icelolly.

Approximately 15,500 sq ft of the space is vacant and available to lease.

Located on Park Row, the building is close to both the business and retail districts of the city with nearby occupiers including Natwest, HSBC, Jamie’s Italian and Pinsent Masons.

The deal comes after UKRO acquired Riverside West, a 42,600 sq ft city centre office building in Sheffield, from Schroder Real Estate Investment Management for £6.85m.

Mark Wilson, associate director in the investment team at Savills Leeds, which advised the buyer, said: “We are delighted to have acquired another prominent office asset for our client following their recent purchase of Riverside West in Sheffield. The regional office market continues to be popular with investors in an environment of strong take up levels and rental growth.”

Adapt worked alongside Ship Street Advisors in the deal. Knight Frank advised the vendor.