Leeds’ iconic St Paul’s House sold for £23.7m

The Grade-II St Paul’s House in central Leeds, one of the most iconic office buildings in the city, has been sold for £23.7m.

Michael and Steven Elghanayan’s EPIC UK bought St Paul’s House from Boultbee Brooks Real Estate in an off-market deal, advised by the Leeds office of Knight Frank.

The 19th century building, which overlooks Park Square, had recently undergone significant renovation work to restore it to its former glory.

The deal showed a net initial yield of 6%.

Graham Foxton, investment partner with Knight Frank, commented: “St Paul’s House is arguably the most striking building in the city centre and now its refurbishment is complete, it is a tremendous mixture of the old and the new.

“It boasts a high-quality Grade A office specification internally which, when combined with the stunning exterior façade and its unrivalled location, offers one of the most attractive working environments in Leeds.

“Whilst we are passionate about all of the properties we deal with and the clients we act for, this is a very romantic story as it is an important chapter in this building’s proud history. It is also a graphic illustration of how Leeds is becoming ever more attractive to investors from across the UK.

“St Paul’s House was bought by Boultbee Brooks Real Estate in 2014. They are developers specialising in office refurbishments and it was previously unloved internally. The exterior is clearly very ornate and the beauty of the building is that it has now been fully modernised to a grade A specification with adaptable floor pates to suit a modern occupier. Boultbee Brooks did a wonderful job.

“Our role was to find a worthy home for the investment and we have done so with the buyers EPIC UK. EPIC have been looking for the right asset in Leeds for some time and already own commercial property in Birmingham, Manchester, Bristol and London and other regional cities.”

Michael Elghanayan of EPIC UK added: “Following its extensive and sensitive refurbishment, we believe St Paul’s House is a very attractive investment, given its superb location, excellent facilities, including parking, and impressive occupiers.”

Robert Cannock of Aurum Real Estate who advises BBRE, also commented: “We acquired St Pauls House for BBRE two years ago with the intention of repositioning the property within the Leeds office market and creating an investment of Institutional standard that would then appeal to a long term investor. Having completed the refurbishment and achieved the key letting to DAC Beachcroft, we were pleased to receive a couple of strong approaches from interested investors and we were very happy to agree the sale to EPIC, as they have an excellent reputation and track record of performance.”

Built in 1878, St Paul’s House was originally constructed as a warehouse and cloth-cutting works for Sir John Barran, the founder of the mass-production, ready-made clothing industry in Leeds.

The architect was Thomas Ambler. It was extensively altered and restored in 1976 with a wholly new interior. The slender towers, originally terracotta, are now fibreglass reproductions.

Today its tenants include Cushman Wakefield, DAC Beachcroft LLP and Quality Care Commission.

The Leeds office of Knight Frank has been retained as the letting agents.

Eamon Fox, partner and head of office agency at Knight Frank in Leeds, commented: “Never have I been more relaxed about the letting prospects of an office building. St Paul’s House captures the best in workplace design, but with an interesting history and an abundance of public realm in the form of Park Square.

“At the moment the ground floor and the third floor are available to let, with 20,000 sq ft of prime office space on offer. Suites can be leased from 3,155 sq ft upwards with rents in the region of £26 per sq ft, and we are on business plan to deliver an early deal for EPIC UK with current interest from occupiers within the private wealth, media and insurance sectors showing an interest in the limited vacant space”.