BT Office Property Bought by Islamic Bank, Gatehouse
Amid a flurry of property purchases in Yorkshire, BT’s regional office property in Leeds, One Sovereign Street, has been bought by UK Islamic bank Gatehouse for a reported ┬ú40m.
The bank reportedly bought the portion of real estate on behalf of Royal Mail Pension Fund, which represents their first acquisition of commercial property in Yorkshire.
The 139,000 sq ft office property is let to BT until September 2020.
“It is clear that the appetite from Islamic investors for prime real estate investments remains unabated, and we look forward to working on further acquisitions in the near future,” commented Adam Cavanagh, vice president of real estate at Gatehouse, according to the Yorkshire Post.
He added: “This latest acquisition brings the total value of our UK portfolio to more than ┬ú100m.”
Tim Cameron-Jones, investment director at DTZ – who handled the sale – said: “This recent deal demonstrates the strong opportunities available for investors in the Leeds office market.”
Yorkshire property in demand
A number of other office properties in Yorkshire are also being snapped up.
City House, which is located close to Leeds train station, has been bought by commercial property company Bruntwood and is the company’s fifth acquisition in Leeds in as many years.
The property offers 120,000 sq ft of office space over 12 floors, and will be refurbished by Bruntwood to provide top-spec Grade A office space combined with serviced office space, along with meeting rooms and conferencing facilities.
Craig Burrow, Bruntwood’s Head of Sales and Development in Leeds, commented: “Bruntwood are delighted with the purchase of City House and we are looking forward to transforming and managing the building in the long term.”
Invista Foundation Property Trust have also bought the 50,343 sq ft Portergate building on Ecclesall Road in Sheffield, for a reported ┬ú10m. The property is currently let to Aviva Life and Pensions.
Plus, Kings Court – a 48,000 sq ft building on King Street – is on offer by the Alliance Trust, and speculation suggests that a prospective buyer has been found. The property is currently let to law firm Walker Morris and it is thought it could be sold for more than ┬ú10.5m.
Another property in Yorkshire, Prince William House on Queen Street, is also under offer to property company Ripley Capital.
Find out more about office space to rent in Leeds, Sheffield, and other parts of Yorkshire by visiting officebroker.com.