MCR Property Group acquires 42 The Headrow as record commercial investment year accelerates

MCR Property Group has acquired 42 The Headrow, the former Direct Line headquarters in central Leeds, adding a £37.6 million gross development value opportunity to a record year of commercial investment across the UK.

The acquisition marks another significant step in MCR’s continued expansion. The Group is investing more than ever in well located commercial assets with the potential to be repositioned, improved and returned to productive use.

Located on the corner of Albion Street, the prominent ten storey building will be retained as a mixed office and retail asset. MCR plans to undertake a comprehensive refurbishment programme and bring the vacant upper floors back into active occupation as quickly as possible.

Backing the future of offices in Leeds

Planning permission was granted in January 2025 for the conversion of the upper floors into 230 co living homes. MCR does not intend to implement the residential consent as part of its current strategy. Instead, the Group will invest in the building’s established commercial use, reflecting its confidence in Leeds as one of the UK’s strongest regional office markets.

The ground floor will remain in retail use, maintaining an active frontage along The Headrow. Floors one to seven will provide high quality leased office accommodation for larger occupiers, while floors eight and nine will offer serviced and flexible workspace for smaller and growing businesses.

42 The Headrow will also become part of a new national workspace brand being developed by MCR Property Group. The platform will bring together leased, serviced and flexible office accommodation under one clear and recognisable customer proposition.

The model is designed to support businesses at every stage of growth, allowing occupiers to move from their first serviced office into larger, independently leased headquarters accommodation while remaining within the MCR portfolio.

A record year of commercial investment

The acquisition comes during the most active period of commercial investment in MCR Property Group’s history.

Recent commercial and mixed use acquisitions include the CIS Tower in Manchester, One Brunswick Square in Bristol, Milford House and Pipers Way in Swindon, Granite House and CityPark in Glasgow, Broadway Park in Edinburgh, Windsor House in Harrogate, Earlsdon Park and Earlsdon One in Coventry, Blenheim Court in Solihull and Moorside in York.

Together, these acquisitions demonstrate the scale of MCR’s ambition and its long term confidence in the UK commercial property market. The Group is deploying more capital, acquiring more assets and investing more extensively across its portfolio than ever before.

Martin Brown, Director of Commercial Property at MCR Property Group, said:

“We are delighted to have secured 42 The Headrow. It is a prominent building in an exceptional city centre location, with a projected gross development value of £37.6 million and significant long term potential.

“We are investing more than ever across our commercial portfolio. 42 The Headrow is the latest acquisition in what has become a record year for the Group, reflecting both the strength of our position and our continued confidence in the UK’s major regional markets.

“We have seen strong traction in Leeds and across the wider region. Businesses continue to look for well located, professionally managed workspace that provides quality, flexibility and genuine value.

“The existing residential consent provides the building with additional flexibility, but our strategy is clear. We will retain and invest in its established office use, undertake a comprehensive refurbishment and bring the vacant upper floors back into active occupation as quickly as possible.

“Floors one to seven will provide leased accommodation for larger occupiers, while floors eight and nine will offer flexible, serviced offices. The ground floor will remain in retail use, maintaining activity at street level and ensuring the building continues to contribute positively to The Headrow.

“42 The Headrow will also become part of the new workspace brand platform we are developing across our national portfolio. Our aim is to create a consistent and recognisable proposition that can support a business from its first serviced office through to larger headquarters accommodation.

“Alongside acquisitions including the CIS Tower, Granite House, CityPark, Broadway Park, Windsor House and our recent purchases in Bristol and Swindon, 42 The Headrow demonstrates the scale of our investment and our determination to continue growing.”

Completed in 1955, 42 The Headrow occupies a highly visible position opposite Dortmund Square, close to Leeds’ principal retail, business and civic districts.

Further details about the refurbishment programme, new workspace brand and office availability will be announced in due course.