King Court sold by King Sturge in multi-million pound investment deal

ONE OF Leeds best-known city centre offices buildings has been sold by property consultants King Sturge in a multi-million pound investment deal.

Kings Court, King Street, with its imposing entrance and prominent position on the corner of King Street with Quebec Street, has been sold for an undisclosed sum by the King Sturge Leeds-based Investment team acting for Alliance Trust Real Estate Partnership Limited, an investment company based in Dundee.

Kings Court, which is in the heart of Leeds’ business district and has 47,698 ft² office space over seven floors, has been sold to a Swiss based private trust in a deal which represents an 8.4 per cent yield.

Built in 1989, King’s Court is let to one of the country’s leading independent commercial law firms, Walker Morris, which has 51 partners, at an annual rent of £891,000 on a 25-year lease which expires in 2014.

Head of the King Sturge Leeds Investment Team, Andrew Summersgill, a partner, who brokered the deal, says: “We have been delighted to act on behalf of Alliance Trust Real Estate Partnership Limited to sell Kings Court, one of Leeds’ highest-profile professional services properties.

“In spite of there being a relatively short unexpired lease term, the building is located in the heart of Leeds’ central business district and the rent reflects a modest level of £17.67 a ft². At a time when income security is so important, it was encouraging to see the level of investor interest as prospective purchasers were undoubtedly attracted to these strong fundamentals which resulted in several offers for the building.

“This latest deal follows our sale of Benson House, Wellington Street, for £20m this spring for business estates manager, MEPC, and shows that there is still strong interest in the Leeds business district property investment sector.”

source : King Sturge