Citi Private Bank – a subsidiary of banking conglomerate Citigroup – and its private investor client have acquired BT UK’s headquarters in Leeds for £38.5m, in a deal reflecting an NIY of 7%.
The 139,079 sq ft building, which is located next to Leeds train station, is currently let to sole tenant BT at a rent of £19.50/sq ft, with 12 years left on the lease.
With prime rents in Leeds currently around £36/sq ft and with RPI-linked rent reviews due in 2025 and 2030, there is an opportunity to drive rental value through refurbishment of the building.
Dale Johnstone, partner at Allsop, who acted on behalf of Citi Private Bank, said: “It is a very interesting time in the market for overseas investors wanting to access high-quality, institutional-grade stock at significant discounts to historical averages. Our client base is very active at the moment, with many looking for all-equity opportunities with a view to adding an element of debt at a later stage as and when borrowing rates come down.”
CBRE acted on behalf of the vendor.
