Background

Between February 2023 and May 2024, the Company refurbished two adjacent office buildings in Leeds city centre (Cardinal House and David Street) investing an aggregate £3.9m.  These refurbishments were undertaken whilst the tenant, First Title Limited (t/a Enact Conveyancing), remained in situ, maintaining continuity of income over the 15-month project.  As part of this refurbishment new 10-year co-terminus leases to First Title were agreed increasing the aggregate annual passing rent from £649k to £943k.

Aim/specification

The refurbishment significantly enhanced the energy efficiency of the buildings, leading to a reduction in occupational costs for the tenant.  By removing the on-site gas supply and installing LED lighting, the EPC rating for the offices improved from ‘C’ to ‘A’. These upgrades have also increased the ERV of the property, and have increased its valuation by £0.9m (net of capex).

The refurbishment works comprised:

  • Replacement of the original single-glazed windows with aluminium double-glazed windows;
  • Installation of new suspended ceilings to accommodate LED lighting in both buildings;
  • Implementation of a brand-new Variable Refrigerant Flow system to future-proof the buildings; i.e. heating/cooling system;
  • Improvements to the internal mechanical and electrical systems;
  • Decarbonisation of the site through the removal of the gas supply; and
  • Installation of electric vehicle charging points.

Outcome

The comprehensive refurbishment has achieved a 45% increase in rental income and a return on investment of 7.5% and producing a final gross valuation of £11m.

Total cost of works

£3.9m

Impact on EPC

C to A

Before:

After: