TOWN has announced the acquisition of The Cube, Leeds, for £12m from Aviva. The completion of the purchase is set for 1 October 2018.
TOWN will fund the purchase using its existing resources and planned disposals. The re-financing of Merrion House in July has given it greater financial flexibility. The Cube is located opposite the Merrion Centre, which is TOWN’s largest asset. It comprises the ground floor leisure units spanning 22,000 sqft, with leases to Hard Rock Café and Mecca Bingo. Moreover, it has offices spanning 50,000 sqft over three floors let to Capita and the government. The property also includes freehold for 84 apartments, which are leased to Persimmon Homes at peppercorn rent. The purchase price of £12m represents an initial yield of 12.5% on the passing income. The yield will reduce to around 9% with lease expiries in 2019 and 2020.
Edward Ziff, TOWN’s Chairman and CEO, said:
“This transaction demonstrates our ambitious growth plans, and the momentum that we are building with both our exciting development pipeline and strategic acquisitions, such as The Cube and Ducie House, in our Piccadilly Basin development.”