Rockspring Property Investment Managers LLP, on behalf of Rockspring Hanover Property Unit Trust (“Hanover”) has completed the off-market acquisition of 9-10 St Andrew Square in Edinburgh for €28.97m (£25.75m), reflecting a net initial yield of 5.2%, from Balmoral Limited.
9-10 St Andrew Square is a prime office and retail asset comprising a total of 53,455 ft² across eight floors. Sainsbury’s occupies the retail unit, which is one of their top performing Scottish stores, while Regus, the specialist serviced office providers, leases the remainder of the building.
The property is located on the south-west corner of St Andrew Square, next to the recently completed headquarters of Aberdeen Standard Investments.
9-10 St Andrew Square will benefit from the recent restaurant openings of Dishoom and the Ivy Café opposite the property. Harvey Nichols and the new St James Shopping Centre are located on the opposite side of the Square to the subject property, whilst Princes Street and Waverly Station are a short walk away, making the asset exceptionally well located for local amenities and transport connections.
Mischa Davis, Hanover Fund Manager at Rockspring commented: “The Edinburgh office market offers a compelling investment case with an undersupply of available space generating rental growth. Whilst fully let to strong covenants, this asset offers growth through asset management and capex investment. This is the perfect addition to the Hanover portfolio providing stable income with growth potential and excellent risk-adjusted returns in a prime ‘Big 6’ location. Ultimately, the investment is about location, location, location, which should drive the returns and maintain Hanover’s out-performance."