Former GPO building
Waverleygate offices sold in £78 million deal
Waverleygate, the Edinburgh office development formerly home to the General Post Office, has been acquired in a £78 million deal by Kennedy Wilson.
The eight-storey building opposite the Balmoral Hotel on North Bridge has a grade-A listed Italian renaissance-style façade.
It includes four landscaped roof gardens, shower facilities, a basement level gym occupied by The Gym Group, together with bicycle and car parking for 50 vehicles.
The 203,400 sq ft of offices are almost fully occupied. Tenants include Amazon, Microsoft, H&M, the Scottish Government and the NHS.
It generates around £4.4m in annual rent. The vendor is Patrizia and the sale price represents a yield of 5.66%.
Kennedy Wilson said it will “invest in the property to provide first class amenities and take advantage of the significant growth opportunity in the Edinburgh market”.
Mike Pegler, head of UK at Kennedy Wilson, added: “This acquisition reflects our view that, at current pricing levels, there is attractive value in the UK office market particularly for assets located in major employment hubs with high-quality educational institutions.
“Waverleygate immediately adds solid recurring income from a strong tenant base and presents multiple opportunities to grow NOI and asset value by further enhancing environmental credentials and overall management of the property.”