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GMI Construction assist Gregory Property Group with a Premier move 

Broadacre House, the former Yorkshire Water offices in the centre of Bradford, is to be transformed into a Premier Inn.

Leeds-based Gregory Property Group have bought Broadacre House from Keyland Developments, the property arm of Yorkshire Water and embarked on a £5 million refurbishment of the 10-storey tower.

The main contractor is Leeds-based GMI Construction Group plc and work began on site this week.

Meanwhile a private client of Steadman Brierley has forward purchased the hotel for around £6.1 million, reflecting an initial yield of around six per cent.

The 50,000 sq ft Broadacre House, which is situated on Vicar Lane close to its junction with Leeds Road and Hall Ings on the eastern side of the city centre, was built by Yorkshire Water in the 1970s to provide customer service and technology space.

Richard Tovey, at Gregory’s, commented: “This inward investment is encouraging news for Bradford and will contribute to the renaissance of its city centre. In recent years, Broadacre House has become tired and we are delighted to find an alternative use for the Tower. By attracting a quality occupier, this has enabled a full refurbishment to be viable”.

He explained: “Bradford centre is short of hotel space and the arrival of a 118-bed Premier Inn will be a major boost to the City’s economy. In addition, there will be 9,200 sq ft of quality office space in the adjoining building, which we have let to Foundation Housing on the basis of a 15-year lease. The hotel has now been sold, but we are retaining ownership of the offices”.

Jarrod Best, managing director of GMI Construction Group, commented: “We are proud to be part of the project team working alongside Gregory to restore Broadacre House into a modern facility for Premier Inn. With our extensive experience of refurbishment works we are well placed to deliver a high-quality development fit for purpose.”

Work should be completed by the end of October 2011. The Premier Inn will open by the end of November 2011.

Premier Inn has signed 25-year lease and the deal represents a £4.9 million financial commitment by Whitbread, owner of Premier Inn.

Kevin Murray, Acquisition Manager (North) for Whitbread Hotels & Restaurants, said: “Premier Inn is the biggest budget hotel chain in the UK today and we are on a mission to bring great quality rooms and great value to even more locations across the country. Investing in Bradford is a superb opportunity for us.

“It means regenerating an important city centre site and transforming it into an attractive hotel. It also means Whitbread creating 70 new jobs as we build our future in the city”.

Leeds law firm Shulmans advised the Gregory Group and handled all the legal parts of the deal.

John Foster of Shulmans commented: "This was a particularly complicated transaction because so many aspects had to be brought together at a single instance”.

King Sturge acted for Gregory in the investment sale.