Deal in heart of city
Stewart’s Mint Building sold to global real estate firm
It is buying the 60,000 sq ft Mint Building in St Andrew Square on behalf of its European Core Fund (HECF) from the Chris Stewart Group. It will be completed early next year and is already pre-let on a 15-year lease.
The Hoskins Architects-designed building, adjacent to the recently opened Edinburgh Grand five star hotel, provides Grade A office space on seven floors.
There are three ground floor retail units, two of which have already been let with Chinese cuisine Tattu opening its fourth UK restaurant in the building, alongside the expanding pizzeria concept, Franco Manca.
Jake Walsh, director, Hines UK, said: “This development provides us with an excellent opportunity to grow our portfolio of office and retail properties in Scotland.
“Edinburgh is one of the fastest growing cities in the UK and has the strongest economy outside London. The quality of the asset and its prime location meet our exacting investment criteria.”
Peter Epping, senior managing director and HECF Fund Manager, said: “The Mint is an exceptional building with best-in-class specifications, located in the heart of Edinburgh.”
Chris Stewart, CEO of Chris Stewart Group (CSG) added: “The deal with Hines and its European Core Fund is a ringing endorsement of the quality and design of The Mint Building, alongside our approach to urban development.
“It puts the building on a par with the best in Europe, attracting top tier investment and for Edinburgh and Scotland it justifies the outward looking and ambitious development strategy we continue to pursue.”
The asset represents HECF’s fourth acquisition in the last 12 months, following new investments completed in Dublin, Amsterdam and Copenhagen. The portfolio of the Fund, which was 99.6% occupied as of Q1 2018, is currently invested in eight different European countries with a current aggregate value close to €1.2bn.
Hines UK has advised on more than four million square feet of projects acquired, completed or in the pipeline in the UK with a total UK portfolio under management valued at in excess of £2 billion.
The company’s portfolio includes a range of assets under management in London and key regional cities including Manchester, Birmingham, Edinburgh and Glasgow.