Property deal in Edinburgh
St James developer acquires OMNi Centre
TH Real Estate, developer of the St James precinct in Edinburgh, has consolidated its control over the east end of the city centre by acquiring the nearby OMNi centre.
It has hinted at a number of changes in the tenant mix to increase footfall in the 220,000 sq ft glass-fronted building neighbouring the Playhouse Theatre.
It houses a 12-screen multiplex Vue cinema and a number of bars and restaurants.
There is also a health and fitness club, let to Nuffield Health, and a 77-room five-star rooftop hotel trading as The Glasshouse.
It also includes a 990-space underground car park, which is let to and operated by Q-Park.
The European Cities Fund targets income-producing properties in cities across Europe, identifying target investments that TH Real Estate believes are best positioned for long-term growth.
Andrew Rich, lead fund manager for the fund, said: “We believe the OMNi Centre is an attractive investment for the fund due to the strong forecasted income return, high occupancy rate of over 96%, a long, well-diversified and secure rental income base, and the asset’s prime location in Edinburgh’s East End.
“The centre of gravity for retail and leisure activity is moving east in Edinburgh, as demonstrated by the new St Andrew Square development and Edinburgh St James (ESJ) redevelopment.
“The fund is in a unique position to benefit from the ESJ development as we can work with the teams delivering this project to ensure that we remain a complementary part of the offer at this end of the City.
“In our view, the OMNi centre should benefit from a general uplift in footfall as the area experiences significant positive change, enhancing the desirability of the location over the medium to long term. We have also identified a number of asset management opportunities to increase income return for our investors.
“Edinburgh is also the UK’s second most popular tourist destination after London. We strongly believe in the investment fundamentals of Edinburgh and feel that the OMNi will prove to be a strong asset for the fund.”