Property investor Hermes Real Estate has sold half its interest in a prestigious Leeds business quarter development.
The half-share sale in the Leeds mixed-use Wellington Place scheme to the Canada Pension Plan Investment Board (CPPIB) is part of an ongoing UK regional joint venture between both organisations. So far the partnership has committed £185m equity to the Yorkshire deal which will complement the existing London office joint venture set up between Hermes Real Estate and CPPIB in July last year.
Located in the centre of Leeds and less than half-a-mile from the city’s main railway station, Wellington Place markets itself as one of the biggest and most prestigious new business quarters under construction anywhere in Britain. Combining 1.5m sq ft of commercial, retail, leisure and residential space, the project’s website describes it as “a community built on the traditions of the city, but with the future in mind”.
And with 35,000 sq ft of offices already completed and construction underway on a further 105,000 sq ft, Wellington Place has been attracting strong interest.
Global law firm, Squire Patton Boggs, last month agreed to lease 32,000 sq ft at No Six Wellington Place when the 105,000 sq ft building completes in late 2015.
Under the new joint venture London-based MEPC will continue develop and manage the scheme. “Wellington Place has been carefully designed to meet the expectations of modern successful businesses that are looking for great workplaces where their staff and customers can thrive in a world class environment,” commented the company’s chief executive, James Dipple.
“This new investment by Hermes Real Estate and CPPIB into Leeds comes at the perfect time to enable us to provide the high quality accommodation this vibrant city needs.”
Future phases at Wellington Place will deliver an additional 317,000 sq ft of Grade A office space in the only fully master planned and securely managed office campus in Leeds City Centre.
Chris Taylor is chief executive at Hermes Real Estate. “Our partnership with CPPIB in London has grown significantly since its establishment in July 2013 and it is a natural next step for both parties to develop the partnership further,” he explained.
“Hermes Real Estate has recently demonstrated its commitment to the regional UK property market through a series of major urban renewal schemes in Birmingham, Leeds and Manchester, and as a like-minded long-term investor, CPPIB is the right partner to take the Wellington Place project forward with us.”
Through its managing director, Andrea Orlandi, CPPIB said it was also committed to making Wellington Place “the new premier business location in Leeds with state-of-the-art office space, an attractive public realm, great transport links and full access to amenities”.
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