New property blow for capital

Koreans pull out of key Edinburgh office deal

Uberior House, Lloyds, Bank of ScotlandA Korean investor is believed to have pulled out of a £70m deal to buy one of Edinburgh’s biggest office developments.

Princes Exchange and the neighbouring New Uberior House on Earl Grey Street were due to be sold to private Korean investor Hyundai Fire & Marine Insurance.

It is understood the talks, which have been under way since the summer, are now over.

The deal would have been the first by a Korean institution in Scotland and the second biggest in Scotland this year.

It is the latest blow to the Edinburgh market. The Abu Dhabi Investment Authority withdrew the sale of Saltire Court after the 180,000 sq ft property in Castle Terrace failed to find a buyer to match the £69m price tag.

It 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.

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

It followed the ending of talks on the sale of nearby Argyle House, home of the Codebase technology incubator, which was subject to a bid from infrastructure fund Equitix.

The collapse of these deals will disappoint the local market which has seen strong demand for Grade A space.


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