Leading Yorkshire property development and investment company Sterling Capitol is looking forward to pursuing development opportunities across Yorkshire in 2018, following a stellar past 12 months.
Sterling Capitol sold five major office buildings at Capitol Park, Leeds, for £18.225 million last summer and then let another quality office building at the same business park to expanding parcel delivery business Hermes.
The five buildings, comprising a total of 95,913 sq ft, were bought by London-based property investment company Squarestone. The combined rent roll was more than £1.7m a year, reflecting a net initial yield of 8.9 per cent.
Mike Heydecke, director of Sterling Capitol, said: “This major sale of five high-quality buildings was very important for us, as it allowed us to concentrate on future developments at all of our superbly-located motorway business parks at Leeds, Barnsley and Goole. It is a passport to future success.
“Capitol Park itself, located by Junction 28 of the M62, is a tremendous success story and recent lettings and deals have taken it to the 1,600 jobs target for Phase One. It is one of the brightest stars of the Yorkshire out-of-town business park sector and continues to attract first-class tenants.
“Meanwhile, we are absolutely delighted that Hermes have moved into 1 Sterling Way. They are a very important part of the Capitol Park family and their expansion is a resounding endorsement of Capitol Park Leeds itself.”
Looking ahead to this year, Mike Heydecke predicted: “This promises to be a very exciting 12 months. We have some extremely significant plans agreed, which will create much-needed business space and jobs in both West and South Yorkshire. We have earmarked specific land at Leeds, Barnsley and Goole for development and are confident we will make major progress in turning these plans into reality this year.”
Elizabeth Ridler of Sterling Capitol’s marketing agents Knight Frank in Leeds added: “Capitol Park has seen a number of deals during the past year, underlining the resilience of the out-of-town investment and occupational market in Yorkshire.
“There has been some uncertainty in the market, but these deals have underlined that there is still a healthy appetite for well-located and attractive properties at Capitol Park. Sterling Capitol should be very proud of their record of developing quality business parks in strategic locations in Yorkshire.”
Mike Heydecke explained: “Job creation is at the heart of our plans and we are proud to have developed the most impressive business parks in Yorkshire, with an excellent mix of tenants and facilities, with new, sustainable jobs very much in mind” said Mr Heydecke.
“The Squarestone deal graphically illustrates that the Yorkshire region continues to be popular with investors and occupiers and underlines that well-located buildings on strong leases will always prove attractive.
“But we are now looking forwards, not backwards. 2018 will see another chapter opened in the story of Sterling Capitol and we can’t wait to get started,” he added.
