A former engineering site on Leeds’ South Bank has been sold to a private investor in one of the city’s largest commercial properties deals of the year.
Round Foundry, a mixed-use development that was redeveloped as part of Holbeck Urban Village, was sold by Igloo Regeneration Partnership to the unnamed buyer for £31.5m
The site, which comprises 155,811 sq ft of office, restaurant and residential space over 5.65 acres, reflects a net initial yield of 7.98 per cent.
Net rent is approximately £2.65m per year, with 24 per cent against Leeds City Council. Tenants include Elmwood Design, Simplicity Marketing, Bloom Media, Welcome to Yorkshire and Mediacom North, together with seven independent food and drink retailers, with nearly 2,000 people employed on site.
Knight Frank advised on the sale, which is thought to be the largest mixed-use deal in Leeds in 2015.
Peter Connolly, head of development at Igloo Regeneration Fund, said he was proud of the phenomenal success the Round Foundry development has been and there are further plans for work in the area.
He said: “The sale completes our business plan for a specific part of the development, but we want to emphasise that we remain active in the area. In particular, we remain involved in the adjacent 0.28 acre Ironworks development site.”
Rebecca Farnsworth, investment partner at Knight Frank in Leeds, stated: “This is another excellent example of Igloo taking an area in need of regeneration and creating an innovative and desirable place to live and work whilst also providing excellent returns for their investors. The market has once again reacted extremely positively to the product they produce.”
Tudor Toone advised the purchaser.