UBS Asset Management's Real Estate & Private Markets business has completed the acquisition of Quartermile 2, a prime office building located in the new Quartermile development in Edinburgh, Scotland for circa €31.2m (£28.5m), representing a yield of 5.4%. The asset was acquired on behalf of a separate account from the Swiss-based fund, AFIAA.
Constructed in 2009, the Grade A building provides 58,840 ft² of flexible, open plan office accommodation spread over six floors. The Very Good BREEAM rated building includes a spacious reception area with high quality finishes, whilst benefiting from underground car parking. Quartermile 2 is multi-let to five tenants representing a range of sectors and providing an attractive weighted average lease term of approximately seven years.
Quartermile 2 is centrally located within Edinburgh’s Quartermile development, a fast-growing and exciting new commercial and residential district in the city centre. The asset benefits from its close proximity to the district’s main retail and leisure facilities, whilst affording easy pedestrian and vehicular access to Lauriston Place. Situated on the site of the former Royal Infirmary, the mixed use-scheme comprises more than 1,000 new build apartments, over 350,000 ft² of office space, together with an extensive retail and leisure offering.
Designed by internationally acclaimed architects Foster & Partners and extending to 19 acres, the development is home to more than 20 businesses currently employing 2,200 workers. Edinburgh is one of the UK’s big six office centres and 2016 saw a record year for investment into the city’s office sector. From an occupational perspective the availability of new Grade A stock is in short supply which is a dynamic that looks set to continue given the limited development pipeline.
