Highcross - Retail Sale - Leeds,

Date: 18 Jun 2008

Savills has advised Highcross Strategic Advisors, acting on behalf of the Highcross Fund III, on the purchase of the freehold investment at Broad Gate, The Headrow in Leeds, from Capital and Counties for £70 million, reflecting an equivalent yield of 7.26%.

The former department store situated in the heart of Leeds city centre is converted into a mixed use property comprising four large retail units on the lower ground, ground and first floors along with grade A offices located on the second to sixth floors. The entire property totals 295,636 sq ft (27,464 sq m).

Of the four retail units covering 121,086 sq ft (11,248 sq m), three have been pre-let to T K Maxx and Argos on 15-year leases and Sainsbury's on a 20-year lease, each paying an annual rent equating to £1.5 million. The remainder of the investment is offered with vacant possession.

Richard Pellatt, director at Highcross comments: "The property provides numerous asset management opportunities within a unique Grade A product and offers occupiers a diverse alternative to our other city centre development at Toronto Square."

Simon Lister, investment director of Savills, adds: "The purchase of Broad Gate marks a complex and sizeable investment by Highcross to obtain the largest single floor plate in Leeds, which is in an excellent location ideally placed for both rail and road access and the city centre amenities. With serious interest in the office accommodation and three of the four retail units already pre-let, demand for this prime scheme is already obvious."

Following the successful purchase of Broad Gate, Savills' office agency team in Leeds has been retained to advise on the lettings at the scheme alongside Colliers CRE. Paul Fairhurst, head of Savills Leeds, says: "With our research showing no marked slowdown in occupational demand over the first half of the year and with in excess of 300,000 ft sq of new enquiries over the past quarter for city centre space, we expect the high quality space at Broad Gate to prove particularly popular."

Capital and Counties was represented by Tudor Toone.

Broad Gate Retail Units