The office transaction concluded in July for £4.50m reflecting a net initial yield of 6.56%.
Will Sandwell of the Galbraith investment team said:
We are delighted to have secured this asset for Thistle Property Group. It offers some very exciting opportunities in the east end of the city which is benefitting from various major redevelopment projects. The Edinburgh office sector is fiercely competitive at the moment, attracting investor interest from all over the world. This is a core location asset and fits in well with our client’s requirement.
The two connected office buildings are located at the East end of Edinburgh City Centre, in close proximity to the major development at Edinburgh St. James. The assets extend to 23,853 sq ft, provide 22 on-site car parking spaces and are fully let with a contracted rent of £313,276 p.a. with most leases expiring in 2022.
Forth House is a traditional sandstone office building within Edinburgh’s New Town and let in totality to Forth Radio. Playfair House is an open plan floorplate office multi-let to 5 different occupiers, accessed from Broughton Street Lane and connected to Forth House via a link building.
David Maxwell of Thistle Property Group commented:
This purchase follows our strategy of investing for the long term in core location assets. The property offers medium term income off low rents from a very strong tenant line up. We look forward to working with existing and new tenants to enhance value.
Addleshaw Goddard provided legal advice to Thistle Property Group. Brodies and Scarlett Land & Development advised the vendor, London & Oriental.