BT’s Leeds office sells for £38.5m
Citi Private Bank, part of Citigroup, has acquired the 139,000 sq ft One Sovereign Street, reflecting a net initial yield of 7%.
The building, completed in 2002 for the comms giant and still single-let to it with a further 12 years unexpired on the lease, was put up for sale with an asking price of £40m in June.
The vendor was Artmax, a Hong Kong-headquartered investment company, represented by CBRE. Allsop represented the buyer, which was acting on behalf of a private client.
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One Sovereign Street is situated in a prime city centre location, immediately adjacent to Leeds railway station. The current rental level is £19 per sq ft, slightly more than half the city’s current headline rent. RPI-linked rent reviews are due in 2025 and 2030.
The triangular building is arranged over eight storeys, including two basement levels, with a central atrium.
BT remains the largest provider of fixed-line, broadband and mobile services in the UK, with more than 82,000 employees in the UK alone.
The group has in the last few years pursued a programme of occupying buildings highly rated in sustainability measures, such as Sheffield Digital Campus.
The acquisition follows Allsop’s recent expansion of its commercial investment team in the North of England with the hire of Richard Brooke, who recently joined the consultancy as partner from Cushman & Wakefield and is based in Allsop ‘s Leeds office.
Dale Johnstone, partner at Allsop, said: “It is a very interesting time in the market for overseas investors wanting to access high-quality, institutional-grade stock at significant discounts to historical averages. Our client base is very active at the moment, with many looking for all-equity opportunities with a view to adding an element of debt at a later stage as and when borrowing rates come down.”