Value Add Project

Fountain House, Phoenix House & Gallery House

The Headrow, Leeds

Nurton acquired these buildings each of c.25,000 sq ft in August 2003 for a total of £7.75m/£103 psf. Whilst the previous owner had planned to demolish and replace the three buildings with a new 100,000 sq ft office development scheme, we felt an alternate strategy would be more effective. Fountain House lent itself to a residential conversion and was sold to a specialist developer in June 2004 for £3.25m. Gallery House and Phoenix House had a number of voids with the balance of income due to expire by December 2004. The reception, common and void areas were refurbished, a new rental level for the area was set and then the building sold in Sept 2006 for £5.50m generating an IRR in excess of 10.0%