London property investor picks up Leeds office park buildings in ‘major’ deal worth over £18m

Sterling Capitol, the property development and investment company, has sold five office buildings at Capitol Park, Leeds, for £18.225m.

The deal was brokered by the Leeds office of property consultancy Knight Frank, which represented Sterling Capitol.

The buildings, which are occupied by the NHS, Barratt Homes, Henderson Insurance Brokers and Hermes, have been bought by London-based property investment company Squarestone.

The combined rent roll is more than £1.7m a year, reflecting an NIY of 8.9%. Squarestone was advised by Allsop.

Graham Foxton, investment partner with Knight Frank, commented: “This deal graphically illustrates that the Yorkshire region continues to be popular with investors and occupiers and underlines that well-located buildings on strong leases will always prove attractive.

“Capitol Park is within minutes of Junction 28 of the M62 and within five minutes of Leeds city centre. To the investor, it offers an excellent covenant strength in superb buildings and a history of commitment given that the majority of the tenants have been there since construction and have renewed their leases recently.”

Mike Heydecke, director of Sterling Capitol, said: “This major sale of five high-quality buildings is a very important for us, as it allows us to concentrate on future developments at all of our motorway business parks at Leeds, Barnsley and Goole.

“We have some extremely exciting plans agreed, which will create much-needed business space and jobs in both West and South Yorkshire.

“Capitol Park itself is a tremendous success story and recent lettings and deals have taken it to the 1,600 jobs target for Phase One. It is one of the brightest stars of the Yorkshire out-of-town business park sector and continues to attract first-class tenants.”

Hugo Denée, head of acquisitions at Squarestone, added: “We are very pleased with the acquisition which satisfies our business model in acquiring good quality real estate around the UK. The park offers good quality income with future re-gear opportunities and a real value add potential that the additional development site will bring.”

Legal advice was provided by Jim Speed, Partner at DWF, for Sterling Capitol and by Andrew Martin, partner at Addleshaw Goddard, for Squarestone.

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