Rockspring sells Leeds office building to Mayfair Capital for £37.2 million

Feb 2018

6 QUEEN STREET.JPG

Rockspring Property Investment Managers LLP (“Rockspring”), on behalf of Rockspring Hanover Property Unit Trust (“Hanover”), has completed the off-market sale of 6 Queen Street in Leeds for £37.2 million, to clients of Mayfair Capital Investment Management Limited.

Last year, Rockspring completed the largest private sector office letting deal of the year in Leeds at 6 Queens Street when a FTSE 100 luxury fashion label took 46,000 sqft, on four floors of space on a 10 year lease.

6 Queen Street was speculatively developed by Rockspring who acquired the site in 2014 to take advantage of strong occupier demand for Grade A office space in a chronically undersupplied market. The building, which was completed in July 2016, comprises 70,940 sqft of high spec office space spread over six floors with basement car parking for 47 vehicles. It is located in the heart of Leeds’ business district and has been awarded BREEAM ‘Excellent’ and EPC A ratings.

Mischa Davis, Hanover Fund Manager at Rockspring commented:

“We acquired the site and speculatively developed 6 Queen Street at a time when the economy supported high levels of concentrated vacancy risk and when the supply of Grade A office space in Leeds was at historically low levels. In line with our strategy to reduce risk in the portfolio, now is the perfect opportunity for us to crystallise profits and reduce the Fund’s overall exposure to vacancy. 6 Queen Street has delivered a total return of approximately 20% pa over the past three years and has contributed to the Trusts outperformance.”

Established 50 years ago, Hanover is an actively managed, open-ended, UK-focused real estate fund which, as at 31 December 2017, had £506.6 million under management. Hanover was recently listed as one the best performing balanced funds on the AREF / IPD UK Property Fund Index, having delivered returns of 11.9% in 2017.

Rockspring