The five-storey building, covering 8,857 square metres, is let on a 15-year FRI lease to the first secretary of state until Sept 2021, with a current rent close to £2m.

The building, developed by HBG Properties, has the benefit of 128 car parking spaces, while nearby residents include Lloyds Bank, KPMG, BT and Hilton and Bewley's Hotels.

According to Oregan's Joe O'Regan, prime rents in Leeds city centre, where the building is located, are expected to rise from the current figure of £25 per square foot to between sterling £26 and sterling £27 per square foot by the end of this year.

"Against heavy competition, we're delighted to secure this prime investment in one of the major office markets in the UK. Assuming the current shortage of grade A space in Leeds continues, we can expect rents to increase even stronger in the coming years, " he says.

Property consultants CB Richard Ellis (CBRE) advised Oregan on the purchase of the building, which was acquired through a geared pension fund.

"Lateral is located in an area where significant development is expected in the short term, including 700 residential units in the immediate pipeline. It is becoming increasingly difficult to secure investment opportunities of this calibre in the UK, " said Andrew Gunne of CBRE's International Investment Department.

"Buyers will always pay a premium for gilt-edged income, " he said, "particularly in a grade A office building in one of the major UK markets experiencing a tightening of supply. This, coupled with a general recovery in the occupational markets throughout the UK, will inevitably lead to this investment performing strongly over the medium term."