Yorkshire developer completes £43m office sale

A Yorkshire-based developer has completed one of the biggest office deals in the UK this year.

Mark Glatman, the chief executive of investors and developers Abstract, has sold the Leonardo Building near Gatwick for £43.34m.

Abstract, which have offices in Wellington Street, Leeds, sold the 110,545 sq ft building to F&C Commercial Property Trust Ltd.

The Leonardo Building, which is being developed on a three-acre site at Manor Royal in Crawley and has more than 400 parking spaces, will be completed in December this year.

Virgin Atlantic has already let the building in its entirety on a 16.5 year lease at £23 per sq ft, making this the largest office letting in the South East this year, outside of London.

The sale reflects a net yield of 5.3%.

Daniel Plummer, head of offices at BMO Real Estate Partners (on behalf of F&C PT), said: “We are delighted to have secured this investment leased to a first-class tenant in an area of very limited supply with strong growth potential”.

Mark Glatman added: “We are really pleased to have concluded this transaction with F&C PT. The Leonardo Building will be a great asset when completed, combining highly cost efficient space with great environmental credentials.

“We will complete by December 14 but then there will be a full bespoke fit-out for Virgin Atlantic which will be dictated by them and how quickly they decide what they want.”

Savills represented Abstract in the sale with Pinsent Masons LLP providing legal support. Dowley Turner Real Estate represented F&C PT with Forsters acting as solicitors for the purchaser