Hermes Real Estate and Canada Pension Plan Investment Board (CPPIB) announced that they have formed a new UK regional joint venture. The partnership involves Hermes Real Estate selling 50% of the development phase of Wellington Place in Leeds to CPPIB.
Complementing the existing London office joint venture set up between Hermes Real Estate and CPPIB in July 2013, this new UK regional joint venture involves Hermes Real Estate and CPPIB committing equity to the project on a 50:50 basis, for a total Gross Development Value in excess of £185 million (€231 million).
Located in the center of Leeds, Wellington Place is being developed and managed by MEPC who will continue to run the project under the new partnership. The masterplan envisages 1.5 million ft² of commercial, retail, leisure and residential space that will make Wellington Place one of the biggest and most prestigious new city center business quarters in Europe.
With 35,000 ft² (3.251 m²) of offices completed, and construction already underway on a further 105,000 ft² (9.754 m²), Wellington Place has been attracting strong interest from the Leeds occupational market. MEPC has successfully leased the great majority of the recently completed first building and is now in active discussions with major office occupiers for further phases. Three further buildings are planned to deliver an additional 317,000 ft² (29.450 m²) of prime office space in the only fully masterplanned and securely managed office campus in Leeds City Centre.
Chris Taylor, Chief Executive of Hermes Real Estate, said: “Our partnership with CPPIB in London has grown significantly since its establishment in July 2013 and it is a natural next step for both parties to develop the partnership further. Hermes Real Estate has recently demonstrated its commitment to the regional UK property market through a series of major urban renewal schemes in Birmingham, Leeds and Manchester, and as a like-minded long-term investor, CPPIB is the right partner to take the Wellington Place project forward with us.
Source: Hermes Investment