CBRE Global Investors, represented by international real estate advisor Savills, has sold Yorkshire Bank’s headquarters in Leeds to a private Spanish investor for £16 million.  The deal reflects a net initial yield of 7%.

The landmark city centre property offers 76,344 sq ft (7,092 sq m) of office space across five floors and has been let in its entirety to the bank since it was built in 1980.  The annual rental income is £1.19 million, with circa nine years unexpired on the current lease.

Located at Twenty Merrion Way, the building is adjacent to the First Direct Arena and Merrion House which is being redeveloped as a 170,000 sq ft  (15,793 sq m) headquarters for occupation by Leeds City Council.  The city’s civic quarter and main retail quarter are also nearby.

Simon Lister, investment director at Savills, comments: “This asset combines a secure income with excellent development prospects and an integral position in a booming area of Leeds city centre.  We received significant interest from both overseas and domestic investors, and are very pleased with the strong sale price achieved.”