MCR Property Group has acquired 42 The Headrow in central Leeds for an undisclosed price.
The company intends to undertake a comprehensive refurbishment of the former headquarters of Direct Line, which is located on the corner of Albion Street
Planning permission was granted in January 2025 for the conversion of the upper floors of the 10-storey building into 230 co-living homes. However, MCR does not intend to implement the residential consent as part of its current strategy and will invest in the building’s established commercial use.
The ground floor will remain in retail use and floors one to seven will provide high quality leased office accommodation for larger occupiers, while floors eight and nine will offer serviced and flexible workspace for smaller and growing businesses.
The building will become part of a new national workspace brand being developed by MCR Property Group, bringing together leased, serviced and flexible office accommodation under one clear and recognisable customer proposition.
Martin Brown, director of commercial property at MCR Property Group, said: “We are delighted to have secured 42 The Headrow. It is a prominent building in an exceptional city centre location, with a projected gross development value of £37.6m and significant long term potential. We are investing more than ever across our commercial portfolio. 42 The Headrow is the latest acquisition in what has become a record year for the group, reflecting both the strength of our position and our continued confidence in the UK’s major regional markets.
“We have seen strong traction in Leeds and across the wider region. Businesses continue to look for well located, professionally managed workspace that provides quality, flexibility and genuine value. The existing residential consent provides the building with additional flexibility, but our strategy is clear. We will retain and invest in its established office use, undertake a comprehensive refurbishment and bring the vacant upper floors back into active occupation as quickly as possible.
“Floors one to seven will provide leased accommodation for larger occupiers, while floors eight and nine will offer flexible, serviced offices. The ground floor will remain in retail use, maintaining activity at street level and ensuring the building continues to contribute positively to The Headrow. 42 The Headrow will also become part of the new workspace brand platform we are developing across our national portfolio. Our aim is to create a consistent and recognisable proposition that can support a business from its first serviced office through to larger headquarters accommodation.
“Alongside acquisitions including the CIS Tower, Granite House, CityPark, Broadway Park, Windsor House and our recent purchases in Bristol and Swindon, 42 The Headrow demonstrates the scale of our investment and our determination to continue growing.”
