M&G Real Estate has acquired a four-acre mixed-use development site - The Haymarket - in Edinburgh for €55.9m (£49.1m). With a gross development value of circa €319m (£280m), the site has planning permission for the development of three Grade A office buildings totalling 350,000 ft², provision for 40,000 ft² of retail and leisure space, a 190-room hotel and a 172-room aparthotel.
The acquisition extends M&G Real Estate’s office development portfolio in Scotland and follows deals to fund the construction of Quartermile 3 and Quartermile 4 Edinburgh, in addition to plans to provide a €113.9m (£100m) best-in-class workplace at The Grid in Glasgow, which has already been awarded Scotland’s second ever WiredScore Platinum rating for digital connectivity. With environmental excellence and well-being at the forefront of the design, The Haymarket will be built to the highest sustainability standards, with state of the art digital infrastructure, technology and connectivity.
The site provides an opportunity to expand the Scottish capital’s growing financial quarter - the Exchange District – which is located next to Haymarket train station, connecting passengers to Glasgow and is also close to tram services serving Edinburgh airport.
Chris Perkins, Head of Business Space, M&G Real Estate, comments: “With the current supply/demand dynamics, bringing 350,000 ft² to the market will reinforce the Exchange District as a prime hub for business in Europe. Whilst Edinburgh remains an attraction for heritage tourism, its rejuvenation as a business and leisure location over the past few years rightly places it amongst Europe’s leading cities. As a provider of investment solutions across geographies, sectors and product types, this investment reinforces our strategy of acquiring assets with potential for sustained income, strong capital appreciation located in targeted growth zones.”
M&G Real Estate was represented by Savills.
