Office landmark sold to investor for £32m

1 City Square, Leeds.  Picture by Simon Hulme
1 City Square, Leeds. Picture by Simon Hulme
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A landmark office building has been sold to an investment company above its £30m asking price.

One City Square in Leeds was acquired by asset and investment manager APAM for £32m on behalf of its client, Britannia Invest A/S.

Aviva Investors, which has owned the building since it was developed in 1997, put it on the market last year.

The 108,000 sq ft building, which is located directly opposite Leeds train station, is let to seven tenants.

The largest tenant in the building is big-four accountancy firm Deloitte, which occupies over 50,000 sq ft of the scheme and has signed a lease until 2028.

Almost a quarter of the building (23 per cent) is currently vacant.

Patrick Freestone, senior investment manager at APAM, said: “1 City Square is, one of, if not the most, prestigious office addresses in Leeds.

“The building has been owned by Aviva since it was developed and will benefit from a new owner breathing fresh life into the building.

“The Leeds market is coming off the back of two very strong years of take-up and Grade A supply is at an all-time low.

“The recent Channel 4 announcement to establish its regional base in Leeds has been a further boost for the city’s office market.”

APAM added in a statement: “These attractive occupational market conditions provide an exciting opportunity for APAM to add value by repositioning the building to provide the first-class accommodation and amenity modern occupiers require.

“The building’s prime location and flexibility will appeal to both traditional sectors and creative/TMT occupiers where we expect continued growth in Leeds.”

JLL acted on behalf of APAM in the deal. Knight Frank acted on behalf of Aviva.