One of Leeds' largest office developments has been sold to a new owner.
Castle House has 14 floors and is currently let to the Secretary of State for the Environment for the next five and a half years. It is home to the HMRC Revenue and Customs offices.
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It has now changed hands from Warwick Capital Partners LLP to Bridges House Property Alternatives Fund IV for £14.5million.
Castle House is close to Wellington Place, which is the site of a planned new government office hub.
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Simon Lister, investment director at Savills Leeds, who oversaw the sale, said:
“We are delighted to have secured a sale of Castle House on behalf of our clients. Investment levels into Leeds offices have been very strong in the first half of the year, with a total of £175 million spent. We anticipate that this will be a record year for office investment in Leeds as investors seek enhanced returns underpinned by rental growth and the demand/supply dynamic within the city.”
The new owners typically invest in regeneration areas and niche sectors, and have also been involved in the refurbishment of 6EP on East Parade.