Merrion Centre owner buys The Cube in Leeds
Property investment, development and car parking company Town Centre Securities has bought The Cube, 123 Albion Street, Leeds for £12m from Aviva. The purchase price of £12m represents an initial yield of over 12.5 per cent on the passing income.
The Cube is located opposite the Merrion Centre, TCS’s largest asset. It is a refurbished and extended former 1960’s office building, comprising of 22,000 sq ft of ground floor leisure units with leases to Hard Rock Café and Mecca Bingo, together with 50,000 sq ft of offices over three floors let to Capita and the Government. It also includes the freehold for 84 apartments which are leased to Persimmon Homes at a peppercorn rent.
The acquisition is consistent with TCS’s focus on true mixed-use assets to lower its exposure to retail. Chairman and Chief Executive Edward Ziff said: “The Cube represents a strategic acquisition for TCS, as we further expand our ownership in Leeds, with its proximity to the Merrion and other key destinations in the city centre. It will provide us with asset management opportunities and importantly the additional income will help mitigate the effect of further asset sales that we plan from our portfolio.”