A joint venture between Bruntwood and Kier has carried out a sale of 3 Sovereign Square in Leeds to Leeds City Council for £43.75 million in what is believed to be the largest Post Brexit Deal in the country.
Craig Burrow, Director of Leeds at Bruntwood commented: “3 Sovereign Square was born in a recession and is a great example of partnership working between Bruntwood, Kier and Leeds City Council.
“Regenerating our major regional city centres is what we do as a business and the importance of this site cannot be overstated in the ongoing renaissance of Leeds.
“There was strong investment market demand for the end product which, despite the national uncertainty at the moment, shows the strength of Leeds as a business destination. Leeds City Council have furthermore demonstrated this confidence with this long term investment in the local economy which will stand the city in good stead for the future.”
Tom Gilman, managing Director of Kier Property North commented: “The significance of this major deal could not be over-estimated. It shows that despite Brexit concerns, confidence remains in property as an asset class.
“The fundamentals of the commercial property market are very sound, offering significantly better yields than other investment classes, driven by attractive and secure income returns.”
The 93,851 sq ft 3 Sovereign Square will be completed in September. Its main occupier is law firm Addleshaw Goddard and terms are agreed with retail operators for the ground floor. Deals are close to being finalised to let the final office suites in the building.
On the site of the old Queen’s Hall, 3 Sovereign Square represents the finest office building in the city, providing over 80,000 sq ft of Grade A offices and 10,000 sq ft of retail and leisure space surrounded by unrivalled public open space.
“The decision to speculatively develop 3 Sovereign Square highlights our confidence in the city. This has been validated by the decision of Addleshaw Goddard to relocate to this flagship development” stated Tom Gilman.
The gateway location offers unmatched proximity to the Railway Station together with the amenity of the retail core and the flourishing South Bank.
“The six-storey building itself, reflects the importance of its location. Providing BREEAM Excellent Grade A office space on the five upper floors, with flexible floorplates of up to 16,500 sq ft, 3 Sovereign Square also boasts retail and leisure amenities on the ground floor.
Councillor Richard Lewis, executive member for regeneration, transport and planning for Leeds City Council, said: “We’re absolutely determined to drive the strong Leeds economy forward, while being a compassionate city that embraces opportunity for all. Our proactive approach to economic development underpinned by wise asset investment and management enables the council to be a real catalyst in stimulating the local economy.
“It has enabled us to play a pivotal role in Leeds’ economic resurgence, working closely in partnership with a resilient and innovative private sector. This investment should further cement that approach.”