A significant property transaction has occurred in Leeds, with Ashtrom Properties UK purchasing the Central Square development for nearly £80 million. This acquisition represents the most sizeable office deal the city has seen in over five years.
Central Square, a notable feature of the Leeds financial quarter and host to renowned tenants such as M&S, PwC, and Sky, was bought by Ashtrom Properties UK for £78 million, as reported by City AM.
The property consists of 217,249 square feet designated for office space spanning 11 floors, complemented by 13,126 square feet allocated for retail, restaurant, and leisure units at street level.
In addition to its existing prominent firms, Central Square’s occupant roster includes businesses such as RSM UK Management, Freeths, GXO Logistics, Sanderson Weatherall, and BDO Services, broadening its professional community.
Guy Lewinsohn, CEO of Ashtrom Properties UK, expressed his company’s commitment to investing in regional markets within the UK, acknowledging the beneficial opportunities for growth and value these areas present: “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.”
He highlighted the significance of the Central Square acquisition to their 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.”
Lewinsohn extended gratitude toward the vendor for their cooperation during the sales process, which enhanced the efficacy of the negotiation: “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 acknowledged the Ashtrom team’s vital role in concluding the deal: “A special thanks goes to our in-house team, whose dedication and expertise were instrumental in driving this acquisition forward. Their commitment, along with the support of our external partners, guided us to a successful outcome.”
‘One of the best regional assets outside London’
CBRE and Knight Frank acted for Ashtrom Properties UK on the purchase, while Savills was involved in the sale.
Will Kennon, executive director at CBRE, commented: “Central Square is one of the best regional office assets located outside of London.”
“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.”
“With the market facing continued development viability challenges, we consider this acquisition will deliver strong risk adjusted returns over both short and long term.”
“We are delighted to have helped Ashtrom Properties UK secure this exceptional asset, to add to their strong UK office portfolio in line with its current strategy to invest in core regional cities.”
Henrie Westlake, head of the North at Knight Frank, 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.”
“Notwithstanding this, there is no question that a normalised market will see significant yield compression that will further validate this approach. This will almost certainly be viewed as the bellwether deal of this cycle.”
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