Canal & River Trust floats Royal Armouries deal
On the market for £11.69m, the freehold property is being sold subject to two 999-year ground leases, with the Leeds museum’s lease backed by the government.
Avison Young has been appointed by C&RT to market the investment opportunity at Leeds Dock.
The Royal Armouries National Museum’s lease is secured by a non-departmental government body, funded by the Department for Culture, Media & Sport, for the next 971 years, providing, said AY, “an unprecedented level of secure income to the new landlord”.
The purpose-built museum, which produces an income of £591,500 per year, is recognised for its impressive collection of arms and armour dating back to the 11th century.
Covering 12.36 acres on Leeds’ South Bank, the site is split into two zones.
The main Royal Armouries museum building makes up zone one, along with an associated 1.41-acre outdoor events space, known as The Tiltyard.
Zone two encompasses a 1,500-space multi storey car park, a Holiday Inn hotel, 350 apartments, 94,000 sq ft of office space and the New Dock Hall conference centre.
Avison Young is handling the disposal. Credit: via Active Profile
David Winterbottom, principal at Avison Young, said: “Royal Armouries National Museum is a high profile, iconic building and it’s rare to be selling a development of such national importance that also benefits from leases of over 900 years on unexpired terms.
“We expect a lot of interest in the asset from a mix of traditional investors, together with some high-net-worth individuals who will be attracted by the opportunity which is underpinned with long term income, vacant possession value and sub income from underleases.”
