Prescient Capital has secured a £27m loan from BGO to help fund the £60m speculative development of 31 Wellington Street in Leeds.
The 80,000 sq ft Grade A office building will replace Wellington Plaza, which has already been demolished.
Work has already started on site at 31 Wellington Street, which is located opposite Wellington Place, and the building will be ready for occupation by the end of next year.
Doug Friend, director of Prescient, said: “The backing of BGO is a massive vote of confidence in the city of Leeds and in 31 Wellington Street itself. BGO is to be congratulated for investing in one of the most exciting developments in the city of Leeds in recent years and their support is a resounding endorsement of our vision.
“This is a very big deal for us. We are very proud to have sourced a partner to fund a completely speculative office development in Leeds. We already have strong interest in at least two of the floors, reflecting the chronic lack of high quality new office space in the city. Prescient has also now taken the decision to occupy one of the ground floor units, which we are very excited about.”
Jim Blakemore, global head of debt at BGO, added: “We’re pleased to be supporting Prescient in their delivery of this best-in-class office development in Leeds. This investment is in keeping with our thesis of lending against high quality office assets in supply constrained markets with known tenant demand; and we look forward to following the development progress.”
Eamon Fox, office agency partner and head of Knight Frank’s Leeds office, who is advising Prescient Capital, said: “BGO’s backing for this stellar project is magnificent news. 31 Wellington Street is a game-changer for the Leeds office market, providing much needed and very timely quality office space to satisfy pent-up demand. As a result, we are quoting record-breaking rents of £55/sq ft, in line with the general trajectory of office rents in Leeds, making the development an exciting investment opportunity.
“It is not surprising that we are already experiencing a high level of interest in this super prime building, as it is the only new building on-site scheme with live construction and certainty of delivery for 2027. This is a significant differentiator from the other major developments in the city in the pipeline. Let’s remember, Prescient Capital is masterminding the first new-build office in Leeds since 2024.
Knight Frank, Fox Lloyd Jones and AC7 have been appointed to market the building.
