Prime office space One Park Row in Leeds city centre has been sold to investment management firm CCLA for a price of £35.6m.
One Park Row was sold by property firm JLL on behalf of Evans Property Group, reflecting an initial yield of 4.43 per cent.
The 79,000 sq ft building is one of the city’s most sought-after addresses and is let entirely to law firm Pinsents LLP for a further 11 years.
The deal is one of the largest Leeds office transactions in the city this year.
Alan Syers, portfolio director at Evans Property Group, said: “The decision to divest of the asset has been taken to enable release of capital in order to fund the group’s reinvestment strategy and the further expansion of our successful Dakota Deluxe hotel portfolio and residential development programme across the UK.”
Mathew Atkinson, director in JLL’s national investment team, said: “The sale, which has set a bench mark yield, created strong levels of interest from both domestic investors and overseas investors highlighting the strength of the asset and the confidence in the Leeds office market.
“We are seeing increased interest in the city from overseas equity attracted by the robust occupational market and the levels of take-up.”
Ben Hall, regional senior director at commercial property agency GVA, acted on behalf of the purchaser CCLA.
Mr Hall said: “We are delighted to have secured the building on behalf of CCLA. The purchaser was attracted to the prime address and long unexpired term to an undoubted tenant coupled with the underlying reversion at the forthcoming 2019 rent review.
“The occupational story in the Leeds office sector is a compelling one and CCLA was keen to benefit from that.”