Brockton Capital fund has acquired The Pinnacle, a prominent 145,000 sq ft, mixed-use asset in Leeds city centre, for around £65m.
The Pinnacle is a mixed-use retail, office and car park investment, situated in the prime retail core of Leeds, directly opposite the Land Securities-owned Trinity Leeds Shopping Centre, and bordering the city’s traditional office core.
The asset comprises landmark office accommodation in Leeds’s tallest office block; 15 retail units all boasting prominent double-frontage along Bond Street and Albion Street; and a 388-space, multi-storey car park leased to Q-Park.
The yield on this significant deal, the largest investment transaction in Leeds so far this year, is 6.5 per cent.
James Spencer, vice president at Brockton Capital LLP, London-based investment adviser to the acquiring fund, said: “We are delighted to have agreed this exciting acquisition, which fits with our strategy of investing in significant and improving destinations in major regional cities.
“Leeds has a vibrant culture; a young and growing population; and a thriving economy, and its retail and office sectors are prospering as a result.
“The Pinnacle provides an opportunity to add significant value through revitalising the local area and curating the right mix of retail and leisure through further asset repositioning and lease-up. The landmark 15-storey offices offer fantastic views over the city and will be improved to provide contemporary, flexible workspace.”
Will Lund, investment specialist with global property consultancy Knight Frank, who advised Brockton Capital, said: “This deal is a resounding endorsement of the central Leeds commercial property market and provides a timely boost to the city’s increasingly strong economy.”
Eamon Fox, partner and head of Knight Frank’s office agency team in Leeds, said: “This is tremendous news for Leeds and we will work closely with Brockton Capital to create office space capable of accommodating additional jobs in The Pinnacle.
“This landmark building has recently undergone a comprehensive refurbishment and offers high quality, flexible and open-plan office space boasting panoramic views from the city’s tallest office block. The Pinnacle is also surrounded by many of the city’s finest bars, restaurants and high street retail stores, making it ideally placed to attract and retain the best talent.”
CMS and Knight Frank advised Brockton Capital, DWF and Savills advised the seller, a private US equity firm, on the transaction.