L&G sells Leeds retail

Glenbrook Investments has acquired 5-6 Commercial Street in Leeds city centre in a £1.74m off-market deal.

The transaction reflects a net initial yield of around 8.8% and is Glenbrook’s second investment in Leeds city centre following the £6.7m purchase and £1m refurbishment of Albion Court, now renamed as St Albion’s.

The Commercial Street property, which is let to Watches of Switzerland and trades under the group’s Goldsmiths brand, is let on a lease expiring in 2030 at a rent of £162,500 per year.

This lease was regeared in 2020, during the height of the pandemic, when the rent was also significantly rebased.

Scott Griffiths, investment director at Glenbrook, said that the deal “underscores the belief we have in Leeds’ post pandemic recovery and longer-term growth potential”.

He continued: “In particular, we like Commercial Street because of its concentration of jewellers and high-end watch brands; retailers that traditionally like to trade alongside one another and are less impacted by online shopping.

“Recent letting activity on the pitch means that there is no availability and we like these situations, as they generally provide superior income durability and opportunities for growth.”

Neighbouring occupiers include Chisholm Hunter, Austen Blake, Beaverbrooks and Boodles, with new entrants to Commercial Street including IWC, Mont Blanc, Jaeger Le-Coultre, Panerai and Breitling, as well as a new Ernest Jones facia taking the old Clarks store.

Zameero and CMS acted for Glenbrook Investments and Acuitus and Eversheds Sutherland represented L&G.

Also in Leeds, the wider Glenbrook group secured consent for a 600-plus build-to-rent riverside apartment scheme off Kirkstall Road earlier this year.