South bank’s Round Foundry sold in £31.5m deal

The Round Foundry, Leeds
The Round Foundry, Leeds
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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.

The Round Foundry, a mixed-use site that was redeveloped as part of Holbeck Urban Village, was sold by Igloo Regeneration Partnership to the unnamed buyer for £31.5m.

The deal is another vote of confidence for Leeds, as regeneration continues in the city’s former industrial heartland.

It comes just weeks after Chancellor George Osborne visited China to promote investment opportunities in the UK, including redevelopment plans for the south bank of the River Aire.

The Round Foundry, based on Water Lane, is made up of new and listed buildings across a 5.65 acre site, including the Round Foundry Media Centre, Grade II*-listed former flax mill Marshalls Mill and Marshalls Court.

In addition to office space, seven independent food and drink retailers are based in the complex, including popular pubs The Midnight Bell and The Cross Keys and Leeds coffee shop chain Out of the Woods.

Nearly 2,000 people are employed on site.

Current tenants, which include Welcome to Yorkshire, Elmwood Design, Simplicity Marketing, Bloom Media and Mediacom North, will provide around £2.65m rental income each year. Leeds City Council accounts for 24 per cent of rent from the site.

Peter Connolly, head of development at Igloo Regeneration Fund, said he was proud of the “phenomenal success” the Round Foundry development has been. Igloo will continue to work in the area on the Ironworks development, he added.

Knight Frank advised on the sale, which is thought to be the largest mixed-use deal in Leeds in 2015.