Partner Article

Leeds’ Toronto Square acquired for £29m

Toronto Square, a grade A office development in Leeds, has been purchased by the M&G Property Portfolio fund in a £29m deal with Highcross.

The 88,200 sq ft property in central Leeds, which has a BREEAM rating of Excellent, was developed in 2010 and is multi-let to fourteen tenants.

Commenting on the deal, Justin Upton, deputy fund manager of the M&G Property Portfolio, said: “There is always strong tenant demand for high quality office developments such as this and, with corporate occupiers becoming more demanding in their requirements, this acquisition provides the Fund with an attractive income yield of 7% and further opportunities to drive performance via the implementation of asset management initiatives.

“The acquisition reflects the Fund’s continued commitment to acquire high quality grade A offices in core UK cities.”

Richard Pellatt, director at Highcross said: “This sale marks the successful completion of our business plan for Toronto Square.

“During Highcross’ ownership we have completely redeveloped the property, remodelled the entrance, extended the floorplate and added two storeys to bring the building up to a grade A standard.

“Testament to its quality, the building has secured fourteen new tenants in challenging times and is now well placed to benefit from future rental growth in an increasingly tight Leeds city centre market.”

The M&G Property Portfolio is managed by Fiona Rowley and Justin Upton of M&G Real Estate.

Knight Frank represented M&G Real Estate, the real estate investment management arm of M&G Investments and Highcross was advised by CBRE, which is a tenant at the Toronto Square building.

This was posted in Bdaily's Members' News section by Mark Lane .