Leading UK property consultancy Allsop has completed on the £38.5m (NIY 7%) purchase of BT UK’s headquarters in Leeds on behalf of Citi Private Bank, a subsidiary of banking conglomerate Citigroup, and its private investor client.
The property is situated in a prime city-centre location, immediately adjacent to Leeds railway station. The 139,079 sq ft freehold building was purpose built for BT plc and is currently let on a low rent of £19.50 per sq ft, with prime Leeds rents currently achieving £36 per sq ft. With RPI-linked rent reviews due in 2025 and 2030 and an opportunity to further drive rental value through refurbishment, it is let to BT plc, its sole tenant, for a further 12 years.
BT is one of the world’s leading communication services companies and the largest provider of fixed-line, broadband and mobile services in the UK, with over 82,000 employees in the UK alone.
The acquisition follows Allsop’s recent expansion of its commercial investment team in the North of England with the hire of Richard Brooke, who recently joined the consultancy as partner from Cushman & Wakefield and is based in Allsop ‘s Leeds office.
CBRE acted on behalf of the vendor.
Dale Johnstone, Partner at Allsop, said: “It is a very interesting time in the market for overseas investors wanting to access high-quality, institutional-grade stock at significant discounts to historical averages. Our client base is very active at the moment, with many looking for all-equity opportunities with a view to adding an element of debt at a later stage as and when borrowing rates come down.”
