Cloth Hall Street, The Calls, opposite Leeds’ Corn Exchange, has been sold to property investment company, Sanderling Estates LLP, Glasgow, for £4.86m, reflecting a yield of 8.42 per cent, by King Sturge’s Leeds-based Investment Team, acting for London-based property company, Wellfield Ltd.
Cloth Hall Street, which was developed by Wellfield Ltd and is on the corner of Cloth Hall Street and Call Lane, features ground floor and basement leisure units occupied by a mix of national and local tenants. These include Italian restaurant, Ask; Latin American restaurant, Las Iguanas; music bar Oporto; bar and restaurant, Neon Cactus and Puregym. There are 57 long-leasehold, city-living apartments on the upper floors.
The average unexpired lease term on the four-storey property is 16.5 years and the current annual income is £472,690 a year.
King Sturge has been involved with the scheme since its inception and has advised on all the lettings as well as the investment sale.
Ben Hall, an associate in the King Sturge Investment Team, who advised on the sale for Wellfield Ltd, says: “Cloth Hall Street is in the fashionable area of The Calls which makes it ideal for leisure operates who trade there. There has not been a lot of recent activity in the leisure investment sector but the property’s strong fundamentals and long, unexpired lease term on 98 per cent of the income attracted investors.
“Following the letting of the final unit to Puregym, which required a change of use, the time was considered right to sell this asset for Wellfield Ltd. The deal represents a good return for Wellfield Ltd and further bolsters the fact that investors are still keen to buy in Leeds city centre.”
The Leeds office of King Sturge is one of the region’s largest independent firms of chartered surveyors and property consultants with 70 staff providing property agency and investment services throughout Yorkshire and Humber and North Derbyshire.