Grade A offices

Exchange Place One sold in off-market deal

Exchange Place 1

Sold: Exchange Place One

Exchange Place One, a Grade A office building on Semple Street in Edinburgh has been acquired in an off-market deal by CBRE Investment Management UK Property PAIF from Macquarie Asset Management.

The property comprises 114,748 sq ft of office space over ground and five upper floors, a basement car park and one ancillary retail unit.

Located in the city’s Exchange quarter, four floors of Exchange Place One are occupied by Blackrock; other occupiers include Hymans Robertson, Cundalls, Cameron Hume and Evans Cycles.

Alistair Wright, director at CBRE Scotland, who handled the purchase on behalf of CBRE Investment Management, said plans for the asset include a comprehensive internal refurbishment with significant focus on improving the building’s ESG credentials that will include a full decarbonisation strategy.

“The Fund will be making a substantial investment showing that despite the pandemic there continues to be strong interest for high quality assets in the right locations,” he said.

The Edinburgh office market dynamics are highly favourable, with the Grade A city-centre vacancy rate at just 2.2%, reflecting a constrained supply and strong demand for high-quality office accommodation.

Jamie Phillips, fund manager of the CBRE UK Property PAIF at CBRE Investment Management, said: “Edinburgh is a vibrant city and its status as a UNESCO World Heritage site places certain constraint on future commercial development within the city.

“This is in part underpinning the undersupply of Grade A stock, which is at its lowest levels for 20 years.”

Avison Young represented the vendor.

Lorne Hotel acquired

The 102-bed Lorne Hotel in Glasgow’s west end has been acquired out of administration by PL Glasgow.

The three star hotel is located in a prime location on Sauchiehall Street and was forced to close in December 2020 because of the impact of the COVID-19 pandemic.

Administrators from Interpath Advisory were subsequently appointed to the hotel’s owner, Bellhill Limited, in May 2021. 

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