Central Square in Leeds has been sold to Ashtrom Properties UK for £78m.
- This is the largest office deal in Leeds since 2017, reflecting significant market growth.
- The property features 217,249 sq ft of office and 13,126 sq ft of retail and leisure space.
- High-profile tenants include M&S, PwC, and Sky, enhancing property value.
- CBRE and Knight Frank facilitated Ashtrom’s acquisition, with Savills managing the sale.
A significant transaction has taken place in Leeds as the Central Square building, a keystone of the financial district, was acquired by Ashtrom Properties UK for a substantial sum of £78 million. This deal stands out as the largest office real estate transaction in Leeds since 2017, echoing the city’s robust market growth and appeal to major investors.
Central Square is not only an architectural fixture of the area but also a thriving business hub. Boasting 217,249 square feet dedicated to office space across 11 levels, it also offers 13,126 square feet at street level for retail, restaurant, and leisure activities. This multi-use aspect contributes significantly to its high valuation.
The building houses a distinguished roster of tenants, including well-known names such as M&S, PwC, Sky, RSM UK Management, Freeths, GXO Logistics, Sanderson Weatherall, and BDO Services. Their presence in Central Square not only enhances its prestige but also ensures a steady flow of rental income, thereby making it a lucrative long-term investment.
Ashtrom Properties UK appears to be strategically broadening its investment footprint across regional UK markets, as emphasised by the company’s CEO, Guy Lewinsohn. He affirms their commitment to regional investments and identifies Central Square as pivotal to their growth strategy, foreseeing opportunities for sustainable and long-term value creation. The cooperation of the vendor and the Ashtrom team played a crucial role in the transaction’s success.
CBRE and Knight Frank handled the purchase’s intricate details on behalf of Ashtrom, while Savills spearheaded the sale negotiations. Industry representatives like Will Kennon from CBRE and Henrie Westlake from Knight Frank view this acquisition as reflecting the broader healthy outlook for Leeds’ office market. Kennon highlights the acute shortage of prime office spaces, predicting strong rental growth and favourable returns for investors. Westlake further notes the strategic alignment of Central Square’s acquisition with Ashtrom’s focus on prime regional assets, signifying a bellwether moment for the cycle.
The acquisition of Central Square highlights Leeds’ growing prominence in the regional office market, offering significant future investment returns.
