PATRIZIA Immobilien AG has acquired the Apex House office complex in Edinburgh, UK, from Catalyst Capital for a net price of c.€30m. The acquisition was made on behalf of a value-add fund managed by PATRIZIA for a large German pension fund based in Northern Germany.
Built in 1991, Apex House offers over 90,000 ft² of space across three buildings, in addition to 136 parking spaces. The property is approximately 80% occupied with an average remaining lease term of four years. The asset has benefited from significant investment and is designed to a high specification with tenants including Scottish Enterprise, Scottish Further and Higher Education Funding Council, Mazars LLP and Svenska Handlesbanken AB. Through active asset management and targeted refurbishment, PATRIZIA will be able to take advantage of the tight market conditions in Edinburgh in leasing the remaining vacant space.
The property is strategically located in the city’s Haymarket district, often referred to as the gateway to Edinburgh’s financial district, and is one of the city’s main areas of expansion. The area has benefited from significant public transport infrastructure upgrades over the past three years, including the redesign of Haymarket rail station and the completion of the Haymarket tram stop. Coupled with the existing bus network, Haymarket is now deemed a major transport hub and key office district.
James Muir, PATRIZIA’s Managing Director for the UK & Ireland, commented: “The acquisition of Apex House presents an opportunity to invest in a value-add asset in a market with strong fundamentals. The UK economy remains resilient with good levels of GDP growth and consistently high levels of employment. In addition to this, Investor appetite for UK real estate has increased significantly following the aftermath of the Brexit vote. As a UK financial centre, Edinburgh is second only to London and the demand-supply imbalance in the city makes this acquisition a tremendous opportunity to deliver excellent value for our clients.”
