Khalbros and Torsion to advance £1bn neighbourhood in Leeds

The investor and developer have formed a joint venture to acquire Eastgate Quarter and will bring forward a transformational mixed-use regeneration scheme in the city centre with up to 1,000 homes.

The JV has acquired Hammerson’s assets on Templat Street for £26m, underlining Hammerson’s strategic exit from Leeds following the disposal of Victoria Gate and Victoria Quarter in 2022.

Located next to Victoria Gate, which was phase one of the Eastgate development and opened in 2016, original plans for phase two consisted of another major retail scheme.

These plans were torn up in 2023 following the collapse of significant retailers throughout the city, prompting a re-think of the direction the development should go in.

Now, Leeds-based companies Torsion Group and Khalbros plan on delivering a community containing PBSA, BTR, workspaces, hospitality, and leisure amenities.

The joint venture will span investment, development, construction, and operations, and will be designed to support Leeds’ ambitious sustainability targets, which include being a zero-carbon city.

Shoosmiths provided expert legal services for the joint venture in this acquisition.

Hammersons retains interest in a  mixed-use block on Eastgate, which it expects to dispose of in due course.

Dan Spencer, founder and chief executive of Torsion, said: “This is a landmark moment, not just for our company but for Leeds. The opportunity to help create a new neighbourhood in such a pivotal part of the city centre is incredibly exciting.”

David Khalastchi, joint managing director of Khalbros, added: “Eastgate Quarter is a once-in-a-generation opportunity to reshape one of the most strategically located city centre sites in the UK.

“Together with our investors and joint venture partners, we are committed to delivering a bold and transformational scheme with
sustainability, placemaking and design excellence at its core.

“What has been vital to us and Torsion throughout this process, being Leeds-based companies, is that the scheme is being brought to life by predominantly Leeds based outfits.

“This is about more than development. It is about creating the Leeds of the future, by the people of Leeds.”

Michael Khalastchi, also joint managing director of Khalbros, concluded: “Hammerson and Leeds City Council have transformed this part of the city and we are honoured to take on that baton and create something very special.”

Cllr James Lewis, leader of Leeds City Council said: “The regeneration of Eastgate Quarter represents a major milestone for our city, with this landmark investment unlocking new homes, jobs and commercial space, helping to shape a vibrant, inclusive and sustainable future for Leeds.”