A landmark transaction has taken place in Leeds as Central Square is acquired by Ashtrom Properties UK for £78m.
- This marks the city’s largest office deal in over five years.
- The purchase enhances Ashtrom’s strategic presence in the UK’s regional markets.
- Central Square features 217,249 sq ft of office space and 13,126 sq ft of retail units.
- The acquisition underscores the growing demand for prime office assets in regional UK cities.
A significant development in Leeds’ commercial property sector has occurred with the sale of the Central Square building to Ashtrom Properties UK for £78 million. This transaction represents the largest office acquisition in the city in more than half a decade, underscoring the growing appeal of Leeds as a hub for business and investment.
Central Square, situated in the heart of Leeds’ financial district, boasts 217,249 square feet of office space across 11 floors along with 13,126 square feet dedicated to retail, dining, and leisure outlets on the ground level. It is home to a roster of distinguished tenants including M&S, PwC, and Sky, alongside firms such as RSM UK Management, Freeths, and BDO Services, thus cultivating a vibrant professional community.
Guy Lewinsohn, CEO of Ashtrom Properties UK, emphasized the firm’s commitment to investing strategically in the UK’s regional markets, citing substantial opportunities for sustainable growth and value creation. He remarked, “We remain committed to strategically investing in the UK’s regional markets, confident they offer substantial opportunities for sustainable growth and long-term value creation.”
The acquisition aligns with Ashtrom’s approach to bolstering its portfolio with prime regional assets. Lewinsohn noted the efficient collaboration with the vendor, which facilitated a smooth transaction process, and expressed gratitude for the professionalism exhibited.
CBRE and Knight Frank acted on behalf of Ashtrom Properties UK in the acquisition, while Savills represented the seller. Will Kennon, CBRE’s executive director, commented that Central Square stands as one of the leading regional office properties outside of London. He highlighted the acute shortage of high-quality office space in Leeds, which is expected to drive rental growth significantly in upcoming market cycles.
Henrie Westlake of Knight Frank echoed these sentiments, identifying the purchase as a strategic move driven by robust market fundamentals poised to deliver strong rental yields. He stated, “As a long term holder of assets, the strategy is driven primarily by the strong underlying market fundamentals that will drive rental growth for prime assets.”
This landmark acquisition signals a robust future for Leeds’ commercial property market as a prime regional investment destination.
