PATRIZIA completes £65.5m sale of Edinburgh office complex
Edinburgh office market characterised by strong occupier and investor demand.
- The yield on the sale of 1 Tanfield asset was just below 6%
- Property is fully let as a result of an extensive asset management programme
Augsburg/Edinburgh, 10 December 2018. PATRIZIA Immobilien AG, the global partner for pan-European real estate investment, announces that it has completed the off-market sale of the 1 Tanfield office complex in Edinburgh for £65.5m (€73.5m) on behalf of its ‘UK Value 2’ fund. The property was sold by way of a corporate transaction to Greenridge Investment Management on behalf of a Joint Venture with an international investor. The property yield was just below 6%.
Kim Sardar, Fund Management Director at PATRIZIA, commented: “This sale follows the successful completion of a comprehensive asset management programme, which has transformed this property into a vibrant hub for businesses operating in the TMT sector. In line with our business plan, this transaction also realises significant value for our investors. The Edinburgh office market continues to experience strong occupier and investor demand and we’ve been able to deliver the right product to satisfy both those markets.”
The 191,000 sq ft, multi-let office complex was acquired in 2015 and was then subject to an extensive asset management programme, including a redesign of the common areas, to bring the building to 100% occupancy.
Tanfield is located in the Canonmills area of Edinburgh, close to the city centre and offers a high amenity service to office occupiers and good transport links. With large, flexible floor plates, a Very Good Breeam rating and Gold Wiredscored certificate, the building has proven popular with business in the TMT sector. The 12 occupiers include Craneware, FNZ, Avaloq, Zonal, Dexcom, Blackcircles and AECOM.
Eric Young & Co advised PATRIZIA. Greenridge were advised by JLL.
PATRIZIA Immobilien AG:
PATRIZIA Immobilien AG has been active as an investment manager in the real estate market across Europe for more than 30 years. PATRIZIA’s activities include the acquisition, management, repositioning and sale of residential and commercial real estate through its own licensed investment platforms. As a global partner for pan-European real estate investment, PATRIZIA operates as a respected business partner of large institutional investors and retail investors in all major European countries. PATRIZIA manages around EUR 40 billion of real estate assets, primarily as an investment manager for insurance companies, pension fund institutions, sovereign funds, savings and cooperative banks and as co-investor. For further information, please visit: www.patrizia.ag.
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