BANK OF Ireland Private Banking has exchanged contracts to sell the Victoria Quarter, a city centre luxury retail destination in Leeds, for £136 million (€170 million). It was bought about six years ago for about £123 million.
Asset managers Kennedy Wilson are handling the sale to UK property firm Hammerson, which owns Eastgate Quarter, another top end shopping complex in the city.
The rent roll of £7.2 million will give the new owner a net return of 5.25 per cent after acquisition costs are taken into account.
Anchored by Harvey Nichols, the Victoria Quarter is located in the heart of Leeds’s retail core and extends to 19,500 sq m (210,000 sq ft).
It consists of three blocks comprising County Arcade, Cross Arcade, Queen Victoria Street and King Edward Street.
It has more than 70 stores and cafes and is 100 per cent let. Its listed arcades provide a unique retail environment in two distinct shopping streets.
Traders include Louis Vuitton, Vivienne Westwood, Whistles and Kurt Geiger.
In spite of the economic downturn, the Victoria Quarter has continued to experience strong demand from designer retail brands. Leeds has an affluent population and remains the principal shopping destination in Yorkshire.
CBRE advised Bank of Ireland Private Banking and Fergus Keane of DTZ in London acted for Hammerson.
:quality(70)/s3.amazonaws.com/arc-authors/irishtimes/2f89f249-f5ec-442f-a46d-7ccea1465bd5.png)
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/6BDEAESQEJH4BHNFRSVZH3W4TM.png)