Prime office investment
Haymarket offices sold by Savills to BP pension fund
Interpoint: ‘excellent opportunity’
Property agent Savills, on behalf of the BP pension fund, has acquired an office development in Haymarket, Edinburgh from Aviva for £18.95m.
Interpoint comprises almost 48,000 sq ft of space currently let to Royal London, the insurance and pensions company, until 2029. The deal reflects a net initial yield of 6.43%.
Rod Leslie, director in the commercial investment team at Savills in Edinburgh, said: “Interpoint represented an excellent opportunity to acquire a prime Grade A office investment in the capital, where the supply of office stock is extremely limited and rents are rapidly rising.
“Edinburgh continues to be a key destination for investment in the UK and we are delighted to have secured this asset for our client. The strength of the location has been further endorsed by M&G’s commitment to Haymarket which is fast becoming a new prime business and commercial quarter within the city core.”
There are expectations that work on the M&G development will towards the end of this year.
On behalf of its shareholders, Commercial Estates Group, represented by Savills, sold the vacant freehold of Unit One on Woodside Road in Bridge of Don, Aberdeen, to Allied International, a manufacture and supplier of linepipe, buttweld fittings and flanges, for £920,000.
Unit One covers 13,571 sq ft (1,261 sq m) and has recently undergone extensive refurbishment. The property comprises a high quality semi-detached workshop and two story office block with a concrete yard and dedicated car parking.
Claire Herriot, associate in the business space team at Savills in Aberdeen, comments: “We are pleased to complete this sale on behalf of our client. The industrial market in Aberdeen continues to show signs of recovery, with heightened activity focused on smaller units of a good quality specification.”