M7 Real Estate has agreed to acquire Bridgewater Place, Yorkshire’s tallest building, for GBP84.5mln ahead of the potential listing of the Leeds landmark on the International Property Securities Exchange (IPSX).
Nicknamed the Dalek, the building comprises 234,000 square feet of grade-A office space occupied by the likes of EY and multinational law firms DWF and Eversheds.
M7 said the property is generating an annual headline rent of GBP5.9mln and is 92.6% let.
A single office suite on the ninth floor, of around 18,000 square feet, is currently available for lease, it added. Filling this space forms part of the asset management plan to capture the building’s full rental potential.
Leeds is the UK’s third-largest regional metropolitan area and economy with good road and rail links to London, the north-east and Scotland.
“Bridgewater Place is a flagship regional office which is characterised by a strong rental income from a number of multinational blue-chip tenants and high collection rates throughout the pandemic, as well as the potential to grow income through asset management,” said Richard Croft, chairman of property investor and asset manager M7.
“Leeds, as with many of the UK’s regional cities, continues to experience a severely constrained supply of quality office space and growing demand”, he added.
M7 is leading the first listing on the IPSX, the world’s only stock exchange devoted solely to property.
Bridgewater Place is expected to follow Mailbox REIT, owner of the Mailbox office-led development, in Birmingham, which will make its debut as a publicly listed company next month.
“Like the Mailbox in Birmingham, we believe Bridgewater Place offers a compelling investment opportunity to investors and we are currently preparing for a potential listing of this prime office property the on the IPSX stock exchange,” said M7’s Croft.