M7 Real Estate has agreed to buy the building ahead of a potential IPO of the property on the IPSX stock exchange
The tallest building in Yorkshire is set to be acquired by a new owner after an £84.5m deal was agreed.
Bridgewater Place comprises 234,000 sq ft of grade A office space and is located in central Leeds, opposite the planned HS2 station entrance.
The property is 92.6 per cent let, including seven ground floor retail units. Occupiers include EY and multinational law firms DWF and Eversheds, with the property currently generating an annual headline rent amount of £5.9m.
M7 Real Estate, the pan European investor and asset manager, has agreed to buy the building ahead of a potential initial public offering of the property on the IPSX stock exchange, a new Regulated Investment Exchange regulated by the FCA, early in 2021.
Completion of the acquisition is subject to a successful capital raise and the listing, in what is expected to be the second company to admit its shares to trading on IPSX.
A single office suite on the ninth floor of about 18,000 sq ft is currently available for lease at Bridgewater Place and leasing this space forms part of 7 Real Estate’s asset management plan to capture the building’s rental reversion potential.
Bridgewater Place also includes approximately 200 residential units, which are separately owned and do not form part of the transaction.
Richard Croft, executive chairman of M7 Real Estate, said: Bridgewater Place is a flagship regional office which is characterised by a strong rental income from a number of multinational blue chip tenants and high collection rates throughout the pandemic, as well as the potential to grow income through asset management.
Leeds, as with many of the UK’s regional cities, continues to experience a severely constrained supply of quality office space and growing demand, he said.
Croft said, like the Mailbox in Birmingham, we believe Bridgewater Place offers a compelling investment opportunity to investors and we are currently preparing for a potential listing of this prime office property the on the IPSX stock exchange.
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.