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Building was viewed by The Scotsman

Ediston lets new block near EICC to Capita

145 Morrison StreetOutsourcing company Capita is taking space in a £10 million office building between the Edinburgh International Conference Centre and Haymarket rail station.

The FTSE 100 group has agreed a 15-year lease at 145 Morrison Street, let by Ediston Property Investment Company (EPIC), a quoted real estate investment trust launched last year by Danny O’Neill’s Ediston Real Estate.

According to property sources the building had been among those viewed by The Scotsman’s owner Johnston Press when it was looking to relocate from Holyrood Road.

Capita chief executive Andy Parker said: “We already have a major presence in Scotland, employing thousands of people across the country to deliver a wide range of services to many different customers.

“After careful consideration we have chosen this building in the centre of Edinburgh as the home for a number of our Edinburgh-based businesses. It provides us with an excellent base to continue growing our businesses in Scotland over the coming years, steadily developing our capability and scale in the country.”

Ediston said Capita has agreed a rental of £676,136 a year, equating to £25.14 per sq. ft, for the recently-completed Grade A building which provides 26,894 sq ft of office space over five floors.
Calum Bruce, director of investment at Ediston Properties, said: “Securing a firm of Capita’s stature is testament to the quality of the building and strength of the location. The asset was developed to be a headquarters building for a single occupier and it is satisfying to see that happen.”

EPIC  announced this month that it is seeking shareholder approval to raise more than £150m over the coming year.

The company, which raised £95m at its launch in October and has now invested those proceeds.

EPIC said the investment outlook was positive and that economic growth was supporting rentals and a further fall in yields.

“The volatility and uncertainty over recent years in the UK real estate market has been replaced over the past 12 months with a macroeconomic picture that is more positive than it has been for some time,” said the company.

Shareholders will meet to approve the share placing on 2 July.

The company has also bought a B&Q Extra retail warehouse in Coatbridge from Harcourt Life Assurance Company for £16.8m, which reflects a yield of 7.46%.

The property covers 103,000 sq ft, as well as a garden centre and builders’ yard, with parking for 600 cars, on a 4.27 acre site. It is let to B&Q until December 2022 with a rent review in 2017.

 

 



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