Multi-let office investment in east end of Edinburgh sells for £4.50m

Property Investment advisor London and Oriental (L&O) have announced the sale of Forth House and Playfair House to Edinburgh based Thistle Property Group for £4.50m reflecting a net initial yield of 6.56%.

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.

Marketed for sale by Scarlett Land and Development, the investment received 10 offers at closing date from a wide range of interested parties including commercial, residential, hotel and office use.

Will Scarlett said: “This level of activity reflects the strategic location of the properties in the increasingly popular east end of Edinburgh. After 10 years of advising on this asset we shall miss our friends at L&O but delighted to have successfully sold the asset for our client”.

The purchaser, Thistle Property Group was represented by Galbraith who recruited Will Sandwell and Jamie Thain in April last year to expand the firm’s investment offering in Scotland.

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, especially in the East side of the city which should prove to be very popular as St James completes.

Brodies provided legal advice to the vendor London & Oriental and Addleshaw Goddard acted on behalf of Thistle Property Group.