This article originally appeared in Property Week: https://www.propertyweek.com/news/apam-acquires-landmark-leeds-office/5100550.article
UK investment manager APAM has acquired landmark Leeds office building 1 City Square for £32.275m on behalf of client Britannia Invest.
The deal is the first for APAM since Sweden-based Catella completed its acquisition of 75% of the share capital of the firm last December. APAM said it would look to target further acquisitions in 2019, focused on offices ranging from £5m to £200m.
Aviva Investors put the office building located directly opposite Leeds train station on the market for £30m last November having secured deals to take the office scheme to 77% let. The largest tenant in the building is big-four accountancy firm Deloitte, which occupies 45% of the scheme and has an unexpired term of nine and a half years. The first and second floors in the building are let to serviced office provider Citibase, while law firm Mills & Reeve, Lloyds Bank and AIB Group are among the other occupiers.
Developed in 1997, the building totals 108,000 sq ft accommodation with floors of 10,000 sq ft capable of being sub-divided. APAM’s acquisition marks the first sale of 1 City Square since it opened.
Patrick Freestone, senior investment manager at APAM, said: “1 City Square is, one of, if not the most, prestigious office addresses in Leeds. The building has been owned by Aviva since it was developed and will benefit from a new owner breathing fresh life into the building.
“The Leeds market is coming off the back of two very strong years of take-up and Grade A supply is at an all-time low. The recent Channel 4 announcement to establish its regional base in Leeds has been a further boost for the city’s office market.”
JLL acted on behalf of APAM. Knight Frank acted on behalf of Aviva.