The historic Leeds home of a well-known firm of solicitors, which was originally built in 1968 for the Bank of England, has been acquired by a regionally focused property investor for £10m.
Palace Capital has exchanged contracts to buy Bank House on King Street in the centre of Leeds from a major pension fund.
The Bank of England still occupies the lower two floors of the building which was recently listed as one of 14 post war buildings of historic interest. The listing predominantly refers to the exterior, meaning interior reconfiguration could potentially boost rental income for its new owner.
Situated in the heart of the traditional business district in Leeds with a net floor area of 88,000 sq ft, the building is let to Walker Morris and Axa Insurance as well as the Bank of England. The majority of the leases do not expire until 2019/20.
Bank House produces a gross rental income of £910,310 per annum and a net income of circa £864,000 per annum. This represents a net yield of 8.1 per cent after transaction costs.
Palace Capital said there was currently 8,800 sq ft of vacant space and it would be taking active steps to secure early lettings to take advantage of a resurgent Leeds office market.
Neil Sinclair, chief executive of Palace Capital, said: “I am delighted to announce this acquisition today. Leeds is one of the UK’s largest business centres outside London.”