Highcross Strategic Advisors has purchased Broad Gate, The Headrow, in Leeds from Capital and Counties for £70m with an initial yield of 6.4%.

Broad Gate, a former department store, is situated in the centre of Leeds and covers a total floor space of 295,636 sq ft. It contains the single largest floor plate in Leeds with each floor covering an acre. Broad Gate is currently a mixed-use property comprising four large retail units on the lower ground, ground and first floor and vacant office space located on the second to sixth floors. Of the four retail units three have already been let, with TK Maxx and Argos on 15-year leases and Sainsbury’s on a 20 year lease and each of the units has an annual rent of £1.5m.

Richard Pellatt, director of Highcross said: “The property provides numerous asset management opportunities within a unique product and offers occupiers a diverse alternative to Toronto Square.” Toronto Square is Highcross’ other main Leeds development which is located in the professional, rather than financial, district and which it plans for a single let.

Recent Savills research showed that there has been ‘no marked slowdown in occupational demand over the first half of the year’ in Leeds. Pellatt told PIN: “The supply and take-up figures are compelling, which contributed to our investment decision.”