Biggest mixed-use deal since 2016
Standard Life Aberdeen offices sold to German fund
Investment: the buildings include offices and restaurant
Standard Life Aberdeen’s new head office in Edinburgh has been acquired by KanAm Grund Group on behalf of a German pension fund in what is the biggest mixed-use investment deal in Scotland since the St James centre in October 2016.
The building at 4-8 St Andrew Square, also includes the Ivy, Refinery, Vapiano, Gaucho and Wagamama restaurants, as well as a branch of TK Maxx. It was developed by Aberdeen Standard Investments in conjunction with Peveril Securities and completed in 2016 on behalf of the Standard Life Pooled Property Pension Fund.
The new owner is Ärzteversorgung Westfalen-Lippe (ÄVWL), one of Germany’s largest occupational pension funds, with assets under management of €13.8 billion and which has real estate investments of around €3 billion. KanAm Grund Group will also be in charge of the ongoing asset management.
Daily Business forecast the sale earlier this year
AVWL has agreed to lease the offices to Standard Life Aberdeen for period of 20 years, reaffirming its commitment to the building. Around 60% of the income is derived from the offices with the remaining 40% form the retail and restaurants.
David Stewart, Fund Manager, Aberdeen Standard Investments commented: “The development and sale has been a resounding financial success for investors within the Standard Life Pooled Pension Property Fund. At the same time, we take great pride in having made a positive contribution to the local environment, developing a building that meets high levels of sustainability and breathing new life into a strategic part of the City.
“We have retained the period buildings forming 1-3 St Andrew Square as long term investments and remain confident in the future success of the area.”
Ralph Jones, Peveril Securities added: “The sale marks the successful completion of the joint venture with ASI and the business plan for the development. As one of the most important Scottish developments in recent years, the scheme led the renaissance of St Andrew Square and the surrounding area.
“Having won Commercial Development of the Year award in the 2017 Scottish Property Awards, the accolade is a fitting tribute to several years of hard work which resulted in the delivery of a very high quality development.”
Savills acted on behalf of the joint venture and CBRE represented the buyer in the deal.