MCR buys Leeds’ Headrow House
With a GDV of £37.6m, the property group has acquired the former Direct Line headquarters in the city centre, with plans to refurbish the building and bring vacant office space back into use.
The prominent 10-storey building at 42 The Headrow, on the corner of Albion Street, will be retained as a mixed office and retail asset.
Direct Line occupied the upper floors until 2021, with the building previously subject to planning permission for conversion into 230 co-living homes by Watkin Jones.
However, MCR said it will not proceed with the residential scheme and will instead retain the property for commercial use, citing confidence in Leeds as a regional office market.
Under the proposals, the ground floor will continue to provide retail space, maintaining an active frontage along The Headrow.
Floors one to seven will be refurbished as leased office accommodation aimed at larger occupiers, while the eighth and ninth floors will offer serviced office space for smaller and growing businesses.
The acquisition forms part of MCR’s wider investment programme across commercial property and will also provide the foundation for a new workspace brand platform bringing together leased, serviced and flexible office accommodation across its portfolio.
CBRE advised on the sale, and the price remains undisclosed.
MCR said the refurbishment would help support businesses at different stages of growth while contributing to the continued regeneration and reuse of a key city centre asset.
Martin Brown, director of commercial property at MCR Property Group, said: “We are delighted to have secured Headrow House. It is a prominent building in an exceptional city centre location and an asset we believe has significant long term potential.
“We have seen some great traction in Leeds and across the wider region, which has strengthened our confidence in the city and its office market. Businesses are continuing to look for well located, professionally managed space that provides quality, flexibility and value.
“The existing residential planning consent gives the building flexibility, but our strategy is to retain and invest in its established office use. We will be moving ahead with a comprehensive refurbishment programme as soon as possible, bringing the upper floors back into active occupation.
“Floors one to seven will provide leased accommodation for larger occupiers, while floors eight and nine will offer flexible, serviced offices. The ground floor will remain in retail use, preserving activity at street level and ensuring the building continues to contribute to The
Headrow.
“Headrow House will also become part of a new workspace brand platform that we are developing across our portfolio. Our aim is to create a recognisable and consistent proposition that can support businesses from their first serviced office through to larger, independently leased headquarters space.
“Headrow House joins MCR during a record year for commercial acquisitions. Alongside assets such as the CIS Tower, Granite House, CityPark, Broadway Park, Windsor House and our recent purchases in Bristol and Swindon, it demonstrates the scale of our investment and our long term commitment to the UK commercial property market.”
