10 South Parade secures third letting
THE BUSINESS DESK.COM
5 January 2011
By Rachel Covill - Business Correspondent
THE only speculative office scheme in Leeds to get off the ground in 2010 has secured its third letting as its owner hunts out further investment opportunities across the region.
10 South Parade is a 36,000 sq ft office development that is undergoing an extensive refurbishment programme, which will result in Leeds’ first Grade A+ city centre office scheme to come to market when completed next month.
Independent insurance broker Lockton Companies is taking space at the building and the premises' owner, Wilton Developments, is also relocating its 12 staff from Harrogate to set up its headquarters at the site.
Wilton Developments has already secured a pre-let of 9,400 sq ft to Xafinity Consulting and 3,200 sq ft of second floor office space to Odgers Berndtson, the executive recruitment consultants.
With the most recent letting to Lockton, the scheme is now 50% pre-let.
It is understood that a deal by Wilton, which is cash rich and does not depend on external finance, to acquire another building in the West Yorkshire city is close to completion.
Speaking to TheBusinessDesk.com, Jason Stowe, managing director of Wilton Developments, said: "We're actively seeking opportunities at the moment. We've got money to spend."
Mr Stowe said Wilton was hopeful of completing a further letting deal at 10 South Parade to let a further 3,500 sq ft in the next few weeks.
He said: “When we announced the speculative scheme last year we said it reflected our confidence in Leeds and securing such early success is testament to this.
“10 South Parade will bring a truly unique product into the market, delivering a quality of office space not seen before and certainly justifying its Grade A+ branding and we are very pleased to welcome Lockton to the occupier line-up in the building.”
Mr Stowe said a major attraction of 10 South Parade was its 3,000 sq ft to 8,000 sq ft floor plates, which would be popular with firms looking to relocate to modern premises.
He said once completed, Wilton would not look to sell 10 South Parade as it would generate attractive incomes from its tenants.
Eamon Fox, associate director at DTZ which is advising Wilton Developments on the scheme, added: “This is a significant landmark development for Leeds and is a reflection that we are starting to see signs of improvement in sentiment from businesses in the city.
“Wilton's decision to undertake the speculative development of 10 South Parade is great news for the Leeds market and will offer occupiers a truly stunning working environment. We continue to be encouraged by ongoing interest and we have one further transaction in solicitor’s hands at this stage.”
On the general commercial property market, Mr Stowe added: "It's tough. It's a time for professional investors and developers and speculators and people chancing their arm are going to struggle.
"But we'll carry on. I don't think speculative development is a dirty word if done correctly."
DTZ, Knight Frank and WSB are advising Wilton Developments on the scheme.
