GLL Real Estate Partners is under offer to buy the flagship Calton Square office block in Edinburgh.
The Munich-based fund manager will pay Irish private equity group Jaguar Capital circa £57m – a yield of 7.25%.
The price paid is significantly lower than the original asking price of circa £65m – representing a yield of 6.33%.
The 152,000 sq ft building is located in Edinburgh’s Waverley Valley, close to Waverley Station.
It has been on the market since April 2012. A source said: “It was originally priced at £65m and failed to attract interest.”
Calton Square was built in 2002 and is let to two main tenants, Baillie Gifford and Pillar Projects, on 20-year leases from 2003.
Computer gaming specialist Rockstar – which created the popular Grand Theft Auto computer game – sublets 20,000 sq ft from the two main tenants at a rent of £27.40 per sq ft. The total passing rent is £4.4m pa.
The syndicate of Dublin-based investors acquired the building from Matrix Securities in 2006 for £74m – a yield of 5.5%.
CBRE advised the vendor; Cushman & Wakefield acted for GLL Real Estate Partners.
lisa.pilkington@estatesgazette.com
