Final city centre office building changes hands in £47 million deal
The final building available at Exchange Place in Edinburgh has been sold for £47 million to a German investment fund.
Exchange Place 1, which is part of a trio of Grade A city centre offices in the Capital’s financial hub, has been bought by GLL Real Estate Partners Pan European Property Fund.
The sale – together with the sale of Exchange Place 2 and 3 earlier this year – brings the combined total for the flagship city centre office campus to £83 million.
According to property experts at JLL, the sale of Exchange Place 1 reflects a net initial yield of 5.57%, making it the biggest Scottish commercial property sale of 2017 so far.
The building is now fully let to tenants including BlackRock, Hymans Robertson, Cameron Hume, Cundall Johnston and Evans Cycles.
Brought to the market by Aberdeen Asset Management early last year, JLL and Cushman and Wakefield acted jointly on the lettings and the sale of Exchange Place 1.
Completed in 2009, the property comprises three separate Grade A multi-let office buildings, totalling close to 215,000 sq ft in the heart of the Exchange District, Edinburgh’s thriving financial and commercial hub.
JLL says the sale of Exchange Place is a boost for Edinburgh’s commercial property investment market following a strong 2016. According to its latest data, international investment as a proportion of total investment in Edinburgh’s office market increased to more than 90% during 2016.
Nick Ireland, Co-Head, UK Direct Property at Aberdeen Asset Management said: “The sale of Exchange Place 1 has brought this successful long term project to a close for us. We were delighted with the quality of the tenants we secured and the level of investor interest clearly demonstrates the strength of demand for high quality assets in a strong city such as Edinburgh.”