APAM, the expert UK real estate and investment manager, has sold Sovereign House in Leeds for £6.6m to Hillview Real Estate, part of The Hillview Group, through niche investment agents, Joiner Cummings.
Sovereign House is an attractive Grade II-listed former banking hall, originally built in 1864 for The Bank of England. It is located in Leeds city centre on South Parade, close to the railway station and the main shopping area.
The property extends to 36,291 sq. ft. over a basement, ground and five upper floors. The basement, ground and first floor are currently occupied by Sports Cafe, and the remaining second to fifth floors are offices.
Sovereign House is currently let to four tenants, including wealth managers, MacIntosh James & Partners and recruitment company, Hays.
APAM has asset managed Sovereign House since January 2015, fully refurbishing the fifth floor (2,953 sq. ft.), providing new air conditioning, a suspended ceiling and upgraded lighting and fittings. APAM has also implemented a number of significant lease restructuring initiatives which have increased the investment’s net income and WAULT.
Josh Whiteley, asset manager at APAM, said: “Sovereign House is a perfect illustration of what APAM does best. Having been acquired as a problematic asset with some short leases and occupancy issues we have been able to work with the tenants to restructure leases, whilst improving vacant and common areas to reposition the asset’s appeal to investors, culminating in a sale at in excess of the original business plan target.”
Nadav Livni, managing director of The Hillview Group, said: “I am delighted with Hillview Real Estates’ recent acquisition of Sovereign House. This property is an excellent addition to the Hillview Partners Property Fund, and fits our strategy of acquiring well-located regional offices with long-term asset management opportunities.
“Over the last year Hillview Real Estate has acquired over 200,000 square feet of regional offices and industrial properties and our team is actively seeking further suitable opportunities.”