The Knight Frank Specialist Property Capital Markets team and Leeds office have advised the Igloo Regeneration Partnership on the sale of the iconic mixed-use Round Foundry development in Leeds to a private investor for £31.5 million.
The sale, which comprised 155,811 sq ft of office, restaurant and residential space over a substantial site of 5.65 acres, reflected a net initial yield of 7.98 per cent.
The award-winning Round Foundry, which is an integral part of Holbeck Urban Village to the south of Leeds Station and the River Aire, is widely regarded as one of the key creative hubs in the north of England.
The development combines the best of Leeds’ industrial heritage with high-quality contemporary commercial space. It encompasses a distinctive cluster of new and listed buildings, the Round Foundry Media Centre, Marshalls Mill (a Grade II* Listed former flax mill) and Marshalls Court.
The net rent is approximately £2.65 million per year, with 24% against Leeds City Council and the rest from a variety of covenants. Tenants include Elmwood Design Ltd, Simplicity Marketing Ltd, Bloom Media (UK) Ltd, Welcome to Yorkshire and Mediacom North Ltd, together with seven independent food and drink retailers, with more nearly 2,000 people employed on site.
Peter Connolly, Head of Development, Igloo Regeneration Fund, commented; “We are very proud of the phenomenal success of the Round Foundry and believe the sale price reflects this. The sale completes our business plan for a specific part of the development, but we want to emphasise that we remain active in the area. In particular, we remain involved in the adjacent 0.28 acre Ironworks development site. Following public consultation, a planning application has been submitted for the Ironworks scheme, which comprises 57 one, two and three-bed apartments, 15 townhouses and retail spaces of 1,200 sq ft and 700 sq ft,”
Shaun Roy, head of Specialist Property Investment, Knight Frank, stated; “This is another excellent example of Igloo taking an area in need of regeneration and creating an innovative and desirable place to live and work whilst also providing excellent returns for their investors. The market has once again reacted extremely positively to the product they produce.”
Tudor Toone advised the purchaser.
