Leeds’ Round Foundry development sold for £31.5m

The Igloo Regeneration Partnership has sold the mixed-use Round Foundry development in Leeds to a private investor for £31.5m.

The sale, which comprised 155,811 sq ft of office, restaurant and residential space over a 5.65 acre site, reflected a net initial yield of 7.98%.

Round Foundry, which is an integral part of Holbeck Urban Village to the south of Leeds Station and the River Aire, is regarded as one of the key creative hubs in the north of England.

The development consists of new and listed buildings, including the Round Foundry Media Centre, Marshalls Mill (a Grade II* Listed former flax mill) and Marshalls Court.

The net rent is approximately £2.65m per year, with 24% against Leeds City Council and the rest from a variety of covenants. Tenants include Elmwood Design Ltd, Simplicity Marketing Ltd, Bloom Media (UK) Ltd, Welcome to Yorkshire and Mediacom North Ltd, together with seven independent food and drink retailers, with more nearly 2,000 people employed on site.

The Knight Frank Specialist Property Capital Markets team and Leeds office advised the Igloo Regeneration Partnership on the multi-million pound sale.

Peter Connolly, Head of Development, Igloo Regeneration Fund, said: “We are very proud of the phenomenal success of the Round Foundry and believe the sale price reflects this. The sale completes our business plan for a specific part of the development, but we want to emphasise that we remain active in the area. In particular, we remain involved in the adjacent 0.28 acre Ironworks development site. Following public consultation, a planning application has been submitted for the Ironworks scheme, which comprises 57 one, two and three-bed apartments, 15 townhouses and retail spaces of 1,200 sq ft and 700 sq ft.”

Rebecca Farnsworth, investment partner at Knight Frank in Leeds, added: “This is another excellent example of Igloo taking an area in need of regeneration and creating an innovative and desirable place to live and work whilst also providing excellent returns for their investors. The market has once again reacted extremely positively to the product they produce.”

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