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Property fails to get buyer

Low offers see Saltire Court sale withdrawn

Saltire Court

Saltire Court

A landmark office block in the shadow of Edinburgh Castle has been withdrawn from sale after offers fell short of the £69 million asking price.

The Abu Dhabi Investment Authority put Saltire Court in Castle Terrace on the market in September.

The 180,000 sq ft property was being marketed through Cushman & Wakefield at a 6.54% yield.

Interest came from Columbia Threadneedle Investments and AEW Europe, but the highest bids are said to have come in at about £65m.

“It’s disappointing. It’s a great building,” one source told Property Week.

The sovereign wealth fund bought the property from Scottish Metropolitan Properties for £53.1m in 1993.

Its  decision to pull the sale came as a surprise, but will disappoint the local market which has seen a few wobbles in the office market despite strong demand for Grade A space.

Saltire Court produces rent of £4.8m a year and tenants include Deloitte, KPMG, Martin Currie and Shoosmiths.

The withdrawal of Saltire Court comes just a few months after a deal to sell the neighbouring Argyle House fell through.

Infrastructure fund Equitix was expected to acquire the 220,000 sq ft offices facing the castle. It is currently home to the Codebase technology incubator and Edinburgh University’s IT division.

The £70m sale of Princes Exchange and the neighbouring 158,000 sq ft New Uberior House on Earl Grey Street to private Korean investor Hyundai Fire & Marine Insurance was also said to be “in the balance” during summer negotiations. Progress on that deal is not known.

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