Knight Property Group has commenced the refurbishment of two Edinburgh City Centre office buildings to take advantage of the buoyant office market.
The Aberdeen based property developer acquired 110 George Street and 2 Castle Terrace in the Capital in early 2015 following a string of successful projects in Aberdeen including the development of City View Business Park, Kingshill Park and Prospect Park in Westhill.
In a move demonstrating the firm’s increased confidence in Edinburgh’s office market, Knight Property Group will speculatively refurbish both sites to provide a total of 18,312 sq ft of Grade A city centre workspace.
Knight Property Group Managing Director James Barrack commented, “Expanding within the Central Belt is an exciting move for the company. Both Castle Terrace and George Street properties are key purchases for Knight Property Group within the city centre. With the prestigious location of the properties and opportunity for refurbishment, we are confident we can create space that will fit the needs of the occupier market.”
Accommodation will be offered to occupiers seeking suites from approximately 1,500 – 11,000 sq ft in size, targeting a known ‘sweet spot’ of demand within the market. Both properties will be available for lease in Q2 2016.
JLL acted on behalf of Knight Property Group to acquire the two properties for an undisclosed price, adding to the developer’s Edinburgh portfolio which includes 3-11 Melville Street, currently occupied by Johnston Carmichael and Eversheds and restaurants in Queensferry Street and Castle Terrace.
Once completed, 110 George Street will offer five floors of high quality period office accommodation totalling 7,317 sq ft within a typical Edinburgh Georgian townhouse.
No 2 Castle Terrace will offer four floors of high specification office accommodation behind a retained façade. The 10,995 sq ft property will undergo significant refurbishment to enhance the quality of internal space and common parts, and remain sympathetic to the traditional feel of the property.
Bruce Robertson, Chartered Surveyor at JLL said: “Recently we have seen a lack of high-specification office developments of this size coming to market, especially in such sought after city centre locations. With office supply diminishing, the addition of two quality offices within Edinburgh city centre is a significant boost for the corporate occupier market. It is worth noting that 70% of requirements in Edinburgh in 2015 were for accommodation under 3,000 sq ft.”
JLL are sole letting agents for 110 George Street whilst JLL are joint letting agents with Montagu Evans on 2 Castle Terrace.