Leeds witnessed a significant real estate transaction with the sale of Central Square for nearly £80m, marking the city’s largest office deal since 2017.
- Ashtrom Properties UK acquired Central Square, a prominent fixture in Leeds’ financial district, accommodating renowned tenants like M&S, PwC, and Sky.
- The property spans 217,249 square feet of office space across 11 floors, with additional retail, restaurant, and leisure units on the street level.
- This acquisition aligns with Ashtrom’s strategic investment in UK regional markets, aiming for sustainable growth and value creation.
- CBRE and Knight Frank facilitated the purchase for Ashtrom, while Savills managed the sale, highlighting potential rental growth and market validation.
A substantial property deal has been concluded in Leeds as Ashtrom Properties UK acquires the Central Square development for approximately £78 million. Renowned for its strategic location within Leeds’ financial quarter, Central Square stands as an emblematic presence housing key tenants such as Marks & Spencer, PwC, and Sky. The transaction, the most sizeable office deal in the city since 2017, was reported by City AM.
Spanning an impressive 217,249 square feet, Central Square offers extensive office accommodations across its 11 floors. Additionally, it features 13,126 square feet dedicated to retail, restaurant, and leisure units at the street level, further enhancing its appeal as a diverse and attractive investment opportunity. The building’s occupancy includes high-profile firms including RSM UK Management, Freeths, GXO Logistics, Sanderson Weatherall, and BDO Services, thus broadening its tenant portfolio within the professional community.
Guy Lewinsohn, CEO of Ashtrom Properties UK, articulates the company’s commitment to the UK’s regional markets, recognising the immense growth potential and value creation in these areas. He noted, “We remain committed to strategically investing in the UK’s regional markets, confident they offer substantial opportunities for sustainable growth and long-term value creation.” Lewinsohn emphasised the significance of the acquisition in line with their investment strategy: “The successful acquisition of this prominent building in the heart of Leeds marks a significant step in our ongoing commitment to invest in the future of the UK’s regional city centres, which we believe are poised for strong growth.”
This transaction’s success also stemmed from the collaborative efforts during the sales process, as acknowledged by Lewinsohn. He extended his gratitude towards the vendor’s cooperation, stating, “I would like to extend sincere appreciation to the vendor for their professionalism and collaboration throughout this process, which ensured a smooth and mutually beneficial transaction.” Furthermore, he praised the dedication and expertise of Ashtrom’s in-house team, as well as the support of external partners.
The acquisition was facilitated by CBRE and Knight Frank, who acted on behalf of Ashtrom Properties, while Savills managed the sale process. Will Kennon, executive director at CBRE, commented on the transaction, describing Central Square as one of the best regional office assets outside London. Kennon observed, “Leeds is experiencing significant growth across all metrics, and the office market is facing an acute shortage of prime office space which we believe will lead to continued strong rental growth over the next cycle.”
Henrie Westlake, head of the North at Knight Frank, highlighted the strategic alignment of Ashtrom’s acquisition with their UK investment strategy. Westlake remarked, “The acquisition of Central Square by Ashtrom Properties UK aligns with their strategic decision to selectively invest in the UK Office market. As a long term holder of assets, the strategy is driven primarily by the strong underlying market fundamentals that will drive rental growth for prime assets.”
The acquisition of Central Square by Ashtrom Properties UK underscores strategic investment in Leeds, signalling growth potential in regional markets.
