A 47,000 sq ft office building, which is home to law firm Walker Morris, has been sold in a property deal for over £10 million by agents Jones Lang LaSalle and Stephenson Day.
Kings Court, a seven-storey office building at 12 King Street in the centre of Leeds has been acquired by an overseas private investor from Westgate Management Ltd (on behalf of a Swiss-based private trust). The sale price represents an 8% net initial yield.
The high profile property, which was constructed in 1989 in line with Walker Morris’ requirements, is let to the Leeds based solicitors at an annual rent of £891,000 per annum. Walker Morris recently indicated a further commitment to the building by signing a reversionary lease to extend their occupation until December 2019.
Andrew Summersgill, director in Jones Lang LaSalle’s investment team, who advised on the sale, commented: “Kings Court is a good quality HQ office building excellently located in Leeds’ traditional business district at the corner of Kings Court and Quebec Street. Given the relatively short unexpired lease, the pricing and interest in this reflects the recognition of improving conditions in the city centre office market.”
Tom Day, director at Stephenson Day who also advised on the deal, added: “Investor interest came from a range of prospective buyers both within the UK market and overseas showing the increasing appetite for core real estate in the major centres.”
Jones Lang LaSalle and Stephenson Day advised the vendor, whilst the solicitors were Fladgate LLP. The purchaser was represented by Fineman Ross.
