The Noé family’s real estate arm has bought three office buildings in Edinburgh for £36.8m.
The Edinburgh Quay offices are 92% let to tenants including Apple, Bloomberg and the Financial Conduct Authority, and have a weighted average lease break of more than five years.
Capreon, the Noé Group’s real estate investment and advisory arm, said the acquisition was the third addition to its European smart workplaces portfolio and followed a recent transaction for three buildings in Madrid, Spain.
The Edinburgh Quay offices have a replacement value of £49m and sit next to a quayside residential development currently under construction. Capreon plans to further develop the buildings, include bringing one of them – Quay 1 – to operational net zero carbon status.
Capreon’s smart workplace strategy is centred on investing in areas where people want and need to work, in offices with strong ESG credentials, hi-tech campuses and life sciences assets. The strategy is focused on defined districts of high-innovation cities within the UK, Spain and the Netherlands.
George Minns, managing director at Capreon, said: “We are buying income with excellent covenants in an undersupplied market, at a 25% discount to replacement cost, while also delivering a net zero carbon business plan.”
Raphael Noé, partner at Capreon said: “This transaction highlights our ability to invest thematically on behalf of our investor clients and we have identified significant appetite from them to grow this strategy further in 2023. We are pleased to have now closed this deal and continue to look for further opportunities in the European market.”
London-based Capreon has more than £2.5bn of assets under management, including science and technology real estate, retail, office space and warehousing.
Noé Group, its parent, was founded in 2017 by Zvi Noé, Raphael Noé, David Bloom and veteran investor Leo Noé.
To send feedback, e-mail julia.cahill@eg.co.uk or tweet @EGJuliaC or @EGPropertyNews
