Edinburgh Quay Ltd, has announced the sale of phase 2 of the multi award winning mixed-use scheme, Edinburgh Quay, to open-ended Luxembourg based fund, Cordea Savills European Commercial Fund for 24 million.
Pamela Grant, Director, Edinburgh Quay Ltd, said: "Edinburgh Quay Ltd has been a perfect example of public/private partnerships working at its very best. The partnership has been established for over 10 years and during that time we created an exciting and vital addition to the Edinburgh market, which in turn, acted as a catalyst for regeneration in Fountainbridge. "Quay 2 was not being actively marketed but the quality product coupled with an impressive tenant line up attracted the offer from Cordea Savills. The market place is currently experiencing some challenging times, but this deal shows that there is business being conducted in relation to prime products."
Quay 2 comprises 5,587 m² of grade A offices with the benefit of 29 designated basement car parking spaces. The building is currently home to high calibre tenants with office rents in the range upwards of 300 per/m² Baker Tilly, Barclays Bank, Pinsent Masons, Companies House & Lloyds TSB Bank with 12,330 m² in two suites available to let. Tesco is to trade from the ground floor retail unit. The sale to the fund, which is advised by Cordea Savills LLP, also includes the basement car park which is let to Britannia Car Parking.
Chris Lewis, Cordea Savills LLP said "Securing a Grade A multi-let office in Edinburgh fits ideally with the profile of Cordea Savills European Commercial Fund. The fund is active throughout Europe, and with Edinburgh's international reputation for quality and the high calibre of Quay 2 and its tenants, our investors are pleased to add this property into the portfolio in a highly competitive market."
The price reflects a net initial yield of 6.1% based on contracted income.
Edinburgh Quay Ltd was represented by Jones Lang LaSalle. Cordea Savills was represented by CBRE.
Kenny Waitt, director at Jones Lang LaSalle commented,"International investors continue to focus on the underlying strength of the Edinburgh economy and are comfortable making significant investments in the commercial property market."
Source: Weber Shandwick