A significant funding package has been agreed for 31 Wellington Street, the 80,000 sq ft Grade A Leeds office building opposite Wellington Place.
The £60m speculative development by Prescient Capital is replacing Wellington Plaza, which has been demolished.
Leading commercial property investment company BGO has backed Prescient Capital with a £27m loan.
Work has already started on site at 31 Wellington Street and the building will be ready for occupation by the end of next year. Located at the junction of Wellington Street and Northern Street, the state-of-the-art nine-storey building is just a few minutes’ walk from Leeds train station. It is the only new building on-site scheme in Leeds.
Doug Friend, director of Prescient, commented: “The backing of BGO is a massive vote of confidence in the city of Leeds and in 31 Wellington Street itself. BGO is to be congratulated for investing in one of the most exciting developments in the city of Leeds in recent years and their support is a resounding endorsement of our vision.
“This is a very big deal for us. We are very proud to have sourced a partner to fund a completely speculative office development in Leeds. We already have strong interest in at least two of the floors, reflecting the chronic lack of high-quality new office space in the city. Prescient has also now taken the decision to occupy one of the ground floor units, which we are very excited about.”
Jim Blakemore, Global Head of Debt, BGO, commented: “We’re pleased to be supporting Prescient in their delivery of this best-in-class office development in Leeds. This investment is in keeping with our thesis of lending against high quality office assets in supply constrained markets with known tenant demand; and we look forward to following the development progress”.
BGO is a highly respected commercial property investment company with over $90bn of assets under management globally and an extensive track record lending in the UK and Europe via its European debt business.
In the UK, specifically, BGO have financed predominantly value-add assets across a broad range of property types in London as well as in regional markets, benefitting from extensive local knowledge and expertise.
Eamon Fox, office agency partner and head of global property consultancy Knight Frank’s Leeds office, who is advising Prescient Capital, commented: “BGO’s backing for this stellar project is magnificent news. 31 Wellington Street is a gamechanger for the Leeds office market, providing much needed and very timely quality office space to satisfy pent-up demand. As a result, we are quoting record-breaking rents of £55 per sq. ft, in line with the general trajectory of office rents in Leeds, making the development an exciting investment opportunity.
“It is not surprising that we are already experiencing a high level of interest in this super prime building, as it is the only new building on-site scheme with live construction and certainty of delivery for 2027. This is a significant differentiator from the other major developments in the city in the pipeline. Let’s remember, Prescient Capital is masterminding the first new-build office in Leeds since 2024.
“There is no doubt that 31 Wellington Street is going to be a magnificent building and a worthy addition to the thriving professional core in the West End of Leeds. We should all be very proud of both the vision and the courage of Prescient Capital and BGO to invest in Leeds at this vitally important time.”
Doug Friend added: “As an adopted Yorkshireman, I have always been a massive supporter of the city of Leeds, having my office base here and the opportunity to develop a prime office building was too good to pass up.
“The combination of the quality of 31 Wellington Street, its superb location and the stark lack of Grade A office space made this development a compelling proposition. It is never an easy decision to embark on a speculative development but, in this case, the fundamentals are very sound. We are delighted that BGO have agreed with this assessment.
“Each floor typically provides around 9,510 sq ft of best-in-class office space and features large floor-to-ceiling windows, flooding the space with natural light and giving it a bright, contemporary feel. The building also supports a healthy work-life balance, just a short walk from shops, restaurants, entertainment and the central Leeds train station,” explained Doug.
Apart from Knight Frank, Fox Lloyd Jones and AC7 have been appointed to market the building, with floorplates available from 3,000 sq ft.
