M7 Real Estate has agreed to acquire Bridgewater Place in Leeds for £84.5 million ahead of a potential initial public offering (IPO) for the property on the International Property Securities Exchange (IPSX) next year.

IPSX is a new investment exchange regulated by the Financial Conduct Authority (FCA) and the world’s first such exchange dedicated to commercial real estate assets.

Completion of the acquisition is subject to a successful capital raise and the listing.

The building is currently owned by an investment vehicle managed by Marick Capital.

Bridgewater Place is the tallest building in Yorkshire and comprises 234,000ft of grade A office space, located in central Leeds.

The property is 92.6% let with occupiers including EY and multinational law firms DWF and Eversheds.

Bridgewater Place also includes 200 residential units, which are separately owned and do not form part of the transaction.

M7 Real Estate executive chairman Richard Croft said: “Bridgewater Place is a flagship regional office which is characterised by a strong rental income from a number of multinational blue-chip tenants and high collection rates throughout the pandemic, as well as the potential to grow income through asset management.

“Leeds, as with many of the UK’s regional cities, continues to experience a severely constrained supply of quality office space and growing demand.

“Like the Mailbox in Birmingham, we believe Bridgewater Place offers a compelling investment opportunity to investors and we are currently preparing for a potential listing of this prime office property the on the IPSX stock exchange.”