Palm Capital has sold a Grade A office building at 1 Waterfront Avenue, Edinburgh, to The Bank of London & The Middle East (BLME), a UK-based Islamic bank, for €29.5m (c.£27m). The sale follows the agreement by Palm Capital of a new 16-year lease with Centrica. The circa 94,100ft² building has served as the operational headquarters of Scottish Gas since 2003 where it employs around 1,800 people.
The energy-efficient HQ is set in the heart of the Edinburgh Waterfront on a former gasworks site. The award-winning Grade A office building was designed by Foster & Partners’ and features glowing environmental credentials having achieved BREEAM “Excellent” certification and EPC rating of “B”.
Reda Khatim, Managing Director at Palm Capital, said: “Having acquired this asset off-market in 2016 and subsequently restructured the lease with Centrica, this sale follows the completion of our business plan and realizes significant value for our investors. This investment was part of our Office 4.0 strategy where we target quality, but under managed assets and reposition them into institutional-quality investment products.”