Miller Developments and British Waterways have sold the second phase of Edinburgh Quay to Cordea Savills European Commercial Fund for £21.1m.
The deal reflects a net initial yield of 6.1% based on contracted income.
Located in Edinburgh’s Fountainbridge the scheme comprises 60,134 sq ft of offices let to tenants including Baker Tilly, Barclays Bank, Pinsent Masons, Companies House & Lloyds TSB Bank for rents ranging from £27.50 per sq ft to £30 per sq ft.
The sale to the open-ended Luxembourg-based fund, which is advised by CB Richard Ellis, also includes the basement car park which is let to Britannia Car Parking.
Chris Lewis, Cordea Savills LLP, said “Securing a Grade A multi-let office in Edinburgh fits ideally with the profile of Cordea Savills European Commercial Fund.
“The fund is active throughout Europe, and with Edinburgh’s international reputation for quality and the high calibre of Quay 2 and its tenants, our investors are pleased to add this property into the portfolio in a highly competitive market.”
Edinburgh Quay director, Pamela Grant, said: “Edinburgh Quay Ltd has been a perfect example of public/private partnerships working at its very best.
“The partnership has been established for over ten years and during that time we created an exciting and vital addition to the Edinburgh market, which in turn, acted as a catalyst for regeneration in Fountainbridge.
“Quay 2 was not being actively marketed but the quality product coupled with an impressive tenant line up attracted the offer from Cordea Savills.
“The market place is currently experiencing some challenging times, but this deal shows that there is business being conducted in relation to prime products.”
Edinburgh Quay was represented by Jones Lang LaSalle.
